Japan Real Estate Investment Corporation …...Japan Real Estate Investment Corporation November 16,...

Performance Review for Fiscal Period Ended September 30, 2016

Japan Real Estate Investment Corporation

November 16, 2016

I would like to express our sincere appreciation that JRE Investment

Corporation successfully marked its 15th anniversary on September 2016

with your support. We look forward to your continued patronage.

1© Japan Real Estate Asset Management Co., Ltd. All Rights Reserved.

Japan Real Estate Asset Management Co., Ltd.Naoki Umeda, President & CEO

Message from President & CEO

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Summary

Financial Results for Sep. ’16 Period

Performance Forecasts for Mar. and Sep. ’17 Period

Internal Growth

External Growth

Appraisal Values

Financial Condition


0.75％（vs. Mar. ‘16 Period: ↓ 0.07 pt）

Summary (Financial Results for Sep. ’16 Period)


Internal Growth

External Growth

Financial Strategy

98.7％（vs.Mar. ‘16 Period: ＋0.4pt）

Monthly rent basis ＋¥18 million

(vs. Mar. ‘16 Period: +¥8 million）

• Occupancy rateat the end of Sep. ’16Period

• Net increase in rentdue to rent revision

• Net increase in rentdue to tenant turnover

• Additional acquisition of Nishiki Park Building

¥175 million

• Acquisition policy No Change

• Interest-bearing debtat the end of Sep. ’16 Period

Monthly rent basis ＋¥24 million

(vs. Mar. '16 Period: +¥19 million）

• Average interest rate

¥356,350 million（vs. Mar. '16 Period:

- ¥7,050 million)

Dividend Per Unit

8,361 yen（vs. Mar. '16 Period: +240 yen +3.0％）（vs. forecast announced in May 2016:

+111 yen +1.3％）

7,681

8,001 8,121

8,361 8,460

8,660

03/15 09/15 03/16 09/16 03/17Forecast

09/17Forecast

〈Trend of dividend per unit〉(yen)

Summary (Performance Forecast for Mar. and Sep. ’17 Period)


Forecast of dividend for Mar. ’17 Period

8,460 yen

Forecast of dividendfor Sep. ’17 Period

8,660 yen

• Net change in monthly rent due to rent revision

Expect a positive growth for four

consecutive periods

Mar. ’17 Period

• Kanazawa Kamitsutsumicho Building

Contribute to revenue from

Mar. ’17 Period

Acquisition on October 3, 2016

• Continuing low interest rate Gradually decreasing by

refinance

Interest payment

Financial Strategy

External Growth

Internal Growth

（vs. Mar. '16 Period: +99 yen）（vs. forecast announced in May 2016:

+100 yen）

（vs. Mar. '17 Period: +200 yen）

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Summary



Internal Growth

External Growth

Appraisal Values

Financial Condition



© Japan Real Estate Asset Management Co., Ltd. All Rights Reserved. 6

ActualMar. ’16 Period Changes Actual

Sep. ’16 Period

Operatingrevenues 30,589 ＋184 30,773

（Property-related revenues among

operating revenues）30,428 ＋345 30,773

Operating income 12,352 ＋16 12,368

Ordinary income 10,816 ＋142 10,958

Profit 10,753 ＋194 10,947

Dividend per unit 8,121 yen ＋240 yen 8,361 yen

（In millions of yen)vs. Mar. ’16 Period Actual

Main factors affecting increase and decrease

・Increase of revenue and income fromthe existing properties（Progress in leasing, rent revision, etc.）

Operating revenues + 552MOperating income + 271M

・Decrease due to reactionary fall ofgain on sales of real estate properties, etc.

Operating revenues

and operating income - 161M

・Decrease of revenue and incomedue to the sales of properties

Operating revenues - 218MOperating income - 81M

・Decrease of interest payment

Ordinary income + 105M



Forecastannounced in

May 2016Changes Actual

Sep. ’16 Period

Operating revenues 30,560 ＋213 30,773

Operating income 12,280 ＋88 12,368

Ordinary income 10,810 ＋148 10,958

Profit 10,800 ＋147 10,947

Dividend per unit 8,250 yen ＋111 yen 8,361 yen

（In millions of yen）vs. Forecasts

・Progress in leasing and upward rent revision that exceeded our assumption and increase of utilities revenues, etc.

・Increase of property-related expensesdue to increase of repairing expenses, etc.



Operating revenues + 213M

Operating income - 71M


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Summary



Internal Growth

External Growth

Appraisal Values

Financial Condition


Performance Forecast for Mar. ’17 Period


ActualSep. ’16 Period Changes Forecast

Mar. ’17 Period

Operating revenues 30,773 - 53 30,720

Operating income 12,368 +121 12,490

Ordinaryincome 10,958 +121 11,080

Profit 10,947 +122 11,070

Dividendper unit 8,361 yen ＋99 yen 8,460 yen

（In millions of yen）vs. Sep. ’16 Period Actual

<Changes in rent for properties heldconstantly from the beginning of Sep. ʼ15 Period>

23,200

23,600

24,000

24,400

24,800

09/15 03/16 09/16 03/17Forecast

09/17Forecast

（In millions of yen）

※ Rent of the existing properties have increased

・Decrease in utilities revenues due toseasonal causes

Operating revenues(existing properties) - 183M

・Decrease of property-related expensesdue to decrease of utilities expensesfrom seasonal causes, etc.

Operating income(existing properties) + 231M

・Acquisition of KanazawaKamitsutsumicho Building

Operating revenues + 120MOperating income + 30M




Performance Forecast for Sep. ’17 Period


ForecastMar. ’17 Period

Changes ForecastSep. ’17 Period

Operating revenues 30,720 +450 31,170

Operating income 12,490 +240 12,730

Ordinary income 11,080 +270 11,350

Profit 11,070 +270 11,340

Dividendper unit 8,460 yen +200 yen 8,660 yen

（In millions of yen）vs. Mar. ’17 Period Forecast

・Progress in leasing, upward rent revision and increase of utilitiesrevenue due to seasonal causes

Operating revenues + 450M

・Increase of property-related expensesdue to increase of utilities expenses from seasonal causes , etc.

Operating income - 340M

・Decrease of depreciationOperating income + 70M

・Decrease of interest paymentOrdinary income + 20M


9,625

10,487

10,958 11,08011,350

9,000

10,000

11,000

12,000

03/15 09/15 03/16 09/16 03/17Forecast

09/17Forecast

Ordinary income Gain on sales

28,314

29,98030,773 30,720

31,170

26,000

28,000

30,000

32,000

03/15 09/15 03/16 09/16 03/17Forecast

09/17Forecast

Operating revenues Gain on sales

11,243

12,05412,368 12,490

12,730

10,000

11,000

12,000

13,000

03/15 09/15 03/16 09/16 03/17Forecast

09/17Forecast

Operating income Gain on sales

9,619

10,476

10,947 11,07011,340

9,000

10,000

11,000

12,000

03/15 09/15 03/16 09/16 03/17Forecast

09/17Forecast

Profit Gain on sales

Summary of Performance Indices


（In millions of yen)

※Amounts in［］do not include influences from gain on sales

〈Trend of operating revenues〉〈Trend of operating income〉


〈Trend of ordinary income〉〈Trend of profit〉

［30,428］

30,589

［12,191］

12,352

［10,654］

10,816

［10,591］

10,753

（In millions of yen）（In millions of yen）

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Summary



Internal Growth

External Growth

Appraisal Values

Financial Condition


Internal Growth


0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

0

10,000

20,000

30,000

40,000

50,000

60,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Grade A rent Grade A-Minus rentGrade B rent Vacancy rate in Tokyo central 5 wards

Leasing Market Conditions

Rent per Tsubo（yen）

Vacancy Rate

（％）

※Data of Tokyo central 5 wards from Mar. 2005- Sep. 2016※(Left axis) Estimated contract rent (Right axis) Vacancy Rate※Source: CBRE

Market for leased office space in Tokyo is

strong due to low level in supply and

steady demand

At present, influence from the expected

increase in supply after 2018 is not seen

Internal Growth


Trend of Occupancy Rate JRE’s occupancy rate shows

stable trend at a high level whichexceeds market occupancy rate

Estimated occupancy rate of the portfoliofor the end of Mar. ’17 Period is 98.5％

※Source: CBRE

85.0%

90.0%

95.0%

100.0%

01/09 01/10 01/11 01/12 01/13 01/14 01/15 01/16

JRE Market98.7％

Internal Growth


Market Rent of the Portfolio

(*1) excluding Tokyo Central 3 Wards(*2) （）are figures changed from the preceding six months

Market rent are continuing its increase

Rent of certain properties have slowed down after showing continuous increase until the previous period

Properties with assessed rent increased from the preceding six months

25 / 60 properties

Tokyo Central3 Wards

11 / 18 properties

1.7％

• Rent increased

• Rent increase ratio out of total 18 properties

(↓3 properties）

(↓1.0 pt)

Other Areas

8 / 27 properties

1.3％

• Rent increased

• Rent increase ratio out of 27 properties

(↓5 properties)

(↓1.4 pt)

Tokyo23 Wards(*1)

6 / 15 properties

1.1％

• Rent increased

• Rent Increase ratio out of total 15 properties

(↓6 properties)

(↓1.7 pt)

(↓14 properties）

Internal Growth


Rent Gap

Trend of Rent Gap

Upward rent revision is smoothly in progress due to decrease of rent gapRent gap of overall portfolio

＋¥12 million（Gap ratio:＋0.3％）

-15.0%-12.0%-9.0%-6.0%-3.0%0.0%3.0%6.0%9.0%12.0%

-2.5%-2.0%-1.5%-1.0%-0.5%0.0%0.5%1.0%1.5%2.0%

Increase of monthly rent due to upward rent revision: Left axis

Decrease of monthly rent due to downward rent revision: Left axis

Net rent gap for regular lease agreements: Right axis

(Increase from Mar. ’16 Period: +¥44 million +1.0％)

Internal Growth


Net Increase of Monthly Contract Rent

Monthly contract rent as of the end of Sep. ’16 Period

¥4,574 million

Rent revision has moved upward for three consecutive periodsRange of increase tend to widen as well

Increase from tenant turnover has expanded as well due to progress of leasing in Tokyo 23 Wards

Monthly contract rent as of the end of Mar. ’16 Period

¥4,529 million

+¥1 million

External Growth

Internal Growth

+¥43 million

+18(Increase +19 Decrease - 0.6)

+24• Tenant Turnover(Leased +111 Returned - 87)

-38

-15

8 10 18

-50

-30

-10

10

30

〈Trend of rent revision (net change)〉（In millions of yen）

• Rent Revision

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Summary



Internal Growth

External Growth

Appraisal Values

Financial Condition


External Growth


Investment Market for Real Estate

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Nagoya

Osaka

Tokyo

10-year JGB Yield

Expected yield of investors continue to

decline and intensifying competition

continue in the investment market

Shortage of desirable properties in Tokyo

23 Wards

〈Trend of expected yield by each area〉

※ Source: CBRE, bloomberg ※Expected yield of investors are shown as upper or lower limits of each area

External Growth


Kanazawa Kamitsutsumicho Building

＜Exterior appearance＞＜Map＞ Location

1-15 Kamitsutsumicho, Kanazawa City, Ishikawa Prefecture

Acquisition price

¥2,780 million

Date of acquisition

October 3, 2016

Completion date

August 2009

Total leasable space

7,206㎡

Estimated NOI

¥178 million per year（NOI yield 6.4％）（Under normal leasing operation)

Appraisal value

¥2,960 million（as of September 1, 2016）

Seller

Shimizu Corporation

External Growth


Trend of Property Information

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

0

20

40

60

80

100

120

140

160

180

200

220

240

Property-related information(Left axis)

Ratio of number of properties with over 3,000㎡ of floor area(Right axis)

Acquisition policy

Continue to consider replacement of the

properties and aim to improve

competitiveness of the portfolio

※ Property-related Information:An index calculated by obtaining the moving average of for the amount of property-related information obtained over the past six months and assigning that moving average as of January 2009 as 100

・Acquire properties among Tokyometropolitan area and other major citiesin a balanced manner

・Continue to consider acquiringproperties of the Sponsors as well

・Carefully select and invest in onlycompetitive and desirable properties

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Summary



Internal Growth

External Growth

Appraisal Values

Financial Condition


374,461 394,623 414,969 440,995 461,702 476,640

03/14 09/14 03/15 09/15 03/16 09/16

Appraisal Values


End of Mar. ’16 Period

Changes(Of which, increase due to

acquisition)

End of Sep. ’16 Period

Appraisal value 996,828 +14,540（+246） 1,011,368

Unrealized gain 135,467 +19,242（+20） 154,710

Ratio of unrealized gain 15.7％ ↑ 2.4pt 18.1%

Upwardappraisal value

57/68properties ↓ 3 properties 54/68

properties

Downwardappraisal value

1/68properties ↑ 2 properties 3/68

properties

DownwardCAP rate

58/68properties ↓ 5 properties 53/68

properties

Upwardassessed CF

43/68properties ↑ 2 properties 45/68

properties

(In millions of yen)Summary of Appraisal Values

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

600,000

700,000

800,000

900,000

1,000,000

1,100,000

(In millions of yen)Total: Appraisal valueUnrealized gain Ratio of unrealized gain

〈Trend of NAV per unit〉

1,011,368

(yen)

〈Trend of appraisal value/unrealized gain〉

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Summary



Internal Growth

External Growth

Appraisal Values

Financial Condition


Financial Condition


Condition of Financial Market

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

JRE Dividend Yield 10-year JGB Yield

Movement of long-term interest rate is

currently stable

Lenders’ attitude continue to be positive

Unit price performance is at a level where

public offering which exceeds the net

asset value per unit is possible

〈JRE Dividend Yield Spread〉

※ Average spread is the average of daily data after April 2002※ Source: bloomberg

Average Spread2.67％

Financial Condition


Summary of Debts

End of Mar. ’16 Period Changes End of Sep. ’16

Period

Balance of interest-bearing

debt363,400 - 7,050 356,350

LTV(Book value basis)

40.8％ ↓ 0.5pt 40.3％

LTV(Market value basis)

35.4％ ↓ 1.1pt 34.3％

（In millions of yen） Improve cash efficiency by repaying

interest-bearing debt via cash reserves

Maintain flexible framework when

procuring funds

Debt Capacity

¥75,063 million• Up to LTV 45%

※ Market value based LTV is calculated by adding unrealized gain to the EOP total assets

Financial Condition


Average Interest Rate and Maturity

Balance Average interest rate

Average maturity

Short-term loans 45,700 0.07％ 0.41 years

Current portion of long-term

loans42,850 1.10％ 0.57 years

Long-term loans/Investmentcorporation

bonds

267,800 0.81％ 4.55 years

Total interest-bearing debt 356,350 0.75％ 3.54 years

（In millions of yen） Recent borrowings

Shinsei Bank, Ltd.Shinkin Central BankResona Bank, Ltd.¥4,000 million (total)0.0718％

１yearSeptember 1, 2016

• Lender

• Amount of loan• Interest rate• Borrowing period• Start of loan period

Mitsubishi UFJ Trust and Banking Corp.

¥3,000 million0.24％ (fix)10 yearsOctober 31, 2016

(1M.Tibor + 4bp as of the end of Sep. 2016)

• Lender

• Amount of loan• Interest rate

• Borrowing period• Start of loan period

Financial Condition


Trend of Interest Payment

1,602

1,521 1,500

1,395 1,360

1,340

0.90%

0.80%

0.82%

0.75%

0.65%

0.70%

0.75%

0.80%

0.85%

0.90%

0.95%

1,200

1,250

1,300

1,350

1,400

1,450

1,500

1,550

1,600

1,650

03/15 09/15 03/16 09/16 03/17Forecast

09/17Forecast

Interest payment Average interest rate（In millions of yen）

Gradual decline of interest payment is

expected after Mar. ’17 Period

Financial Condition


JRE’s Credit Ratings Maintain highest rating in J-REIT

under conservative financial operations

Rating Outlook

S & P A+ Stable

Moody’s A1 Stable

R & I AA Stable


Great shot! It’s right in the middle of the fairway.Trend of leasing market is slowly following.

Let’s make the second shot as a chance for birdie.

There is a cloud of large supply faraway.I don’t know if that will come closer,

but let’s earn our score while we can!


Akasaka Park Building Queen’s Tower A Mitsubishi UFJ Trust and

Banking Building

Shibuya Cross Tower

＜Disclaimer concerning Forecasts＞This presentation contains information regarding forecasts based on the plans and outlook of Japan Real Estate Investment Corporation (JRE). All data contained herein, other than those that describe current or historical data, are based on such forecasts. These forecasts are based on the assumptions, judgment, and data currently available from Japan Real Estate Asset Management (J-Rea) and JRE. These data may contain known and unknown risks, uncertainty, and other factors not accounted for. The forecasts herein may be affected by known and unknown risks, uncertainty, or other factors, particularly with respect to JRE’s internal and external growth and profitability-per-unit targets. The aforementioned risks, uncertainty, and other factors may result in significantly different results regarding JRE’s future performance, management, and financial data implicitly or explicitly presented herein. JRE shall assume no obligation to update or further disclose data regarding these forecasts after the date of this presentation.

Japan Real Estate Investment CorporationPerformance Review for Fiscal Period Ended September 30, 2016

November 16, 2016

Japan Real Estate Asset Management Co., Ltd.

1. Financial Results and Forecasts

Income Statement for Sep. ’16 Period 2 Financial Results for Sep. ’16 Period and Forecasts for Mar. ’17 and

Sep. ’17 Periods 3 Balance Sheet for Sep. ’16 Period 4・5 Balance Sheet Forecast for Mar. ’17 Period 6・7 Cash Flow and Dividend Statement for Sep. ’16 Period 8 Historical Summary of Selected Financial Index in the Previous 5 Periods 9 JRE’s Achievement after IPO and Performance Forecasts 10・11・12・13 Performance Comparison (Mar. ’16 Period vs Sep. ’16 Period) 14・15 Breakdown of Factors in the Net Increase of Operating Revenues

and Operating Income 16 Historical NOI Yield (Investment Yield) 17 Breakdown of Operating Revenues 18 Trend in Property Management Costs and Utilities Expenses 19 Past Record of Capital Expenditure and Repairing Expenses

for Renovation Work and Future Plan 20・21 JRE Growth Strategy 22 Management Principles 23

2. Internal Growth Factors in the Net Increase of Monthly Contract Rent 26 Comparison of Portfolio Rent vs Market Rent 27 Trend of Market Rent Level 28・29 Net Increase of Monthly Contract Rent 30 Trend of Rent Revision 31 Changes in Average Rent Level 32 Status of Tenant Turnover (By Area and Rent Change) 33 Trend in Vacancy Rate (Comparison with Market Vacancy Rate) 34

3. External Growth Acquisition of an Additional Share for Sep. ’16 Period (Nagoya)-Nishiki Park Building- 36 Acquisition for Mar. ’17 Period (Kanazawa)-Kanazawa Kamitsutsumicho Building- 37 External Growth (Consideration of Property Acquisitions) 38 External Growth (Deal Sources) 40・41 External Growth (Acquisition Criteria) 42

Table of Contents

4. Financial Strategies

Summary of Debts at the End of Sep. ’16 Period 44 LTV / Debt Capacity / Diversification of Repayment Dates 45 Overview of the Interest-bearing Debt at the End of Sep. ’16 Period 46・47 Unitholder Data 48・49

5. Portfolio Information Historical Asset Size and Occupancy Rate 52 Geographic Diversification and Trend in Average Building Age 53 Tenant Diversification and Changes in the Number of Tenants 54 Major Tenants and Ratios 55 Newly Leased & Returned Space of Each Property 56 Portfolio List at the End of Sep. ’16 Period (Occupancy Rate, etc.) 57 Appraisal Values of Properties 58・59 Details of Appraisal Values at the End of Sep. ’16 Period 60 Historical Appraisal Values and NCF 61 Performance (Operating Results) of Each Property for Sep. ‘16 Period 62 Other Portfolio Information for Sep. ‘16 Period 63 PML Values 64・65 Portfolio Map 66・67 Portfolio Classification by Area and Floor Space 68 Portfolio Classification by Building Age and Location 69

6. Others Outline of Japan Real Estate Investment Corporation 72 Compliance Structure 73 Structure and Past Record of Fees to Asset Management Company 74・75 Environmental Measures･Disaster Prevention･

Strengthen Portfolio Competitiveness 76・77 Key Properties of JRE 78・79 Unit Price Performance ① (After IPO) 80 Unit Price Performance ② (From Sep. ’16 Period to Date) 81 Unit Price Performance ③ (Relative to Major Indices) 82 Yield Spread Comparison 83 Interest Rate Comparison of Japan and U.S. 84 J-REIT Market 85 Disclaimer concerning Forecasts and Translation 87

(1)

(2)

(3)(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

(13)

(14)

(15)

(16)

(17)

(18)(19)

“Ratio of share of ownership” refers to: the share of co-ownership in the case of a building owned jointly with other owners; the share of common area as set forth inrelevant documentation such as the rules on management of the building in the case of a compartmentalized building (including a building that sharescompartmentalized building units with other owners); and the share of quasi co-ownership in the case of trust beneficiary rights owned jointly with other owners.“Brokerage fees, etc.” = brokerage fees in connection with lease contracts + incentive fees paid to the property management company for rent increase upon contractrenewal “Property-related revenues” = Rental revenues (rent income ［including rent for residential portions］, common service charges, income from parking spaces, andcollected electricity charges, etc.) + Non-rental revenues (cancellation fees and other miscellaneous income)

“The number of tenants” refers to those tenants with whom we have concluded lease agreements for leasable floor space of building. (It does not include tenantswho are leasing space other than floor space of buildings, such as parking space or side signboards.)

“The number of tenants” is the number of sub-lessees in cases where a pass-through lease agreement (a type of agreement in which the rent charged to the lesseeis linked to the rent to be collected from the sub-lessees) is signed with a property management company, etc.

The number of tenants for the entire portfolio is the gross number of tenants by building. (If the same tenant occupies multiple properties, such tenant is counted asmultiple tenants.)

“Book value” includes construction in progress and leasehold rights, etc.

“Capital expenditure” represents capital expenditure for construction completed during the period. (excluding the expenses capitalized as construction in progressand as home furniture, the brokerage fees, etc. related to real estate acquisition, and incidental expenses of acquisition such as real-estate acquisition tax, which arereflected in the book value.) Extension work cost is not included in “Capital expenditure.”

“Rent” means tenant rent for “Leasable space.”

All numerical data are expressed by rounding the numbers down to their respective units. Percentages, including those for occupancy rates, and interest-bearingdebt/total assets ratio are rounded to the first decimal point.The figures for “Leasable space,” “Leased space,” “Occupancy rate” and “Number of tenants” only refer to the portion of shares owned by Japan Real EstateInvestment Corporation (JRE).“Average occupancy rate” is calculated by dividing total leased space by total leasable space at the end of every month during the period.“Leasable space” and “Leased space” do not include the area used for or leased as rental meeting rooms and maintenance/stock rooms and Nippon Brunswick(land with leasehold interest).

The data pertaining to the residential portions are not included in “Leasable space,” “Leased space,” “Occupancy rate” and “Number of tenants” for “KitanomaruSquare,” “Nibancho Garden,” “Akasaka Park Building,” and “Nishiki Park Building.”

“Gain on transfer of properties” = Gain on sale of properties + Gain on exchange of properties

The acquisition price for Ryoshin Ginza East Mirror Building (\7,999,422,762) consists of the amount paid to acquire the building on March 15, 2005 (\5,353,500,000),and the total amount spent to expand the property (\2,645,922,762). The acquisition price for Jingumae Media Square Building, part of which was sold on October 30,2009, is the initial amount paid to acquire the property.

“Sponsors” refers to the following two shareholders of Japan Real Estate Asset Management Co., Ltd. (J-Rea): Mitsubishi Estate Co., Ltd. and Mitsui & Co., Ltd.

As Nippon Brunswick (building) was transferred as of August 23, 2013, the acquisition price of Nippon Brunswick (land with leasehold interest, \5,500 million),represents the acquisition price of Nippon Brunswick (\ 6,670 million) net of the acquisition price of the building (\1,170 million) on March 24, 2004.

As JRE implemented a 2-for-1 split of each investment unit as of January 1, 2014, figures calculated on the assumption of the split are indicated by “on a post-splitbasis.”

The abbreviated property name is reflected on certain pages. (The abbreviations are shown in the chart below.)

Terms used in this report

Property nameAbbreviation ofproperty name

Property nameAbbreviation ofproperty name

Genki Medical Plaza Genki Medical Plaza Ebisu Neonato Ebisu NeonatoKitanomaru Square Kitanomaru Square Harmony Tower Harmony TowerMD Kanda Building MD Kanda Otsuka Higashi-Ikebukuro Building Otsuka Higashi-IkebukuroKandabashi Park Building Kandabashi Park Ikebukuro 2Chome Building Ikebukuro 2ChomeOtemachi Financial City North Tower Otemachi FCN Ikebukuro YS Building Ikebukuro YSNibancho Garden Nibancho Garden Hachioji First Square Hachioji FirstMitsubishi UFJ Trust and Banking Building Mitsubishi UFJ Trust Saitama Urawa Building Saitama UrawaBurex Kojimachi Building Burex Kojimachi MM Park Building MM ParkSanno Grand Building Sanno Grand Queen's Tower A Queen'sYurakucho Denki Building Yurakucho Denki Kawasaki Isago Building Kawasaki IsagoKodenmacho Shin-Nihonbashi Building Kodenmacho Musashi Kosugi STM Building Musashi Kosugi STMKyodo Building (Kayabacho 2Chome) Kyodo (Kayabacho 2Chome) 8･3 Square Kita Building 8･3 Square KitaBurex Kyobashi Building Burex Kyobashi Jozenji Park Building Jozenji ParkGinza 1Chome East Building Ginza 1Chome Higashi Nibancho Square Higashi NibanchoGinza Sanwa Building Ginza Sanwa Sendai Honcho Honma Building Sendai HonmaRyoshin Ginza East Mirror Building Ryoshin Ginza EM AER AERHarumi Front Harumi Front Kanazawa Park Building Kanazawa ParkHarumi Center Building Harumi Center Nishiki Park Building Nishiki ParkAkasaka Park Building Akasaka Park Nagoya Hirokoji Place Hirokoji PlaceAoyama Crystal Building Aoyama Crystal Nagoya Hirokoji Building Nagoya HirokojiClover Shiba-koen Clover Shiba-koen Nagoya Misono Building Nagoya MisonoShiodome Building Shiodome Shijo Karasuma Center Building Shijo KarasumaShiba 2Chome Daimon Building Shiba 2Chome Daimon Umeda Square Building Umeda SquareCosmo Kanasugibashi Building Cosmo Kanasugibashi Shin-Fujita Building Shin-FujitaShinjuku Eastside Square Shinjuku Eastside Sakaisujihonmachi Building SakaisujihonmachiShinwa Building Shinwa Midosuji Daiwa Building Midosuji DaiwaTokyo Opera City Building Tokyo Opera City Amagasaki Front Building Amagasaki FrontTIXTOWER UENO TIX UENO Lit City Building Lit CityHigashi-Gotanda 1Chome Building Higashi-Gotanda 1Chome NHK Hiroshima Broadcasting Center Building NHK HiroshimaOsaki Front Tower Osaki Front Tower Tosei Tenjin Building Tosei TenjinOmori-Eki Higashiguchi Building Omori-Eki Higashiguchi Tenjin Crystal Building Tenjin CrystalNippon Brunswick Building(Land with leasehold interest) Nippon Brunswick (Land with leasehold interest) Hinode Tenjin Building Hinode TenjinYoyogi 1Chome Building Yoyogi 1Chome Kanazawa Kamitsutsumicho Building Kanazawa Kamitsutsumichoda Vinci Harajuku da Vinci Harajuku Hirokoji Sakae Building Hirokoji sakaeJingumae Media Square Building Jingumae MS Kyoto Shijo Kawaramachi Building Kyoto KawaramachiShibuya Cross Tower Shibuya Cross Tower

1. Financial Results and Forecasts

Income Statement for Sep. ’16 Period

2

(In millions of yen, (Dividend per unit in yen))

*1 The initial forecast means the Sep. ’16 Period performance forecast announced on May 16, 2016*2 Excluding Depreciation*3 Excluding Gain on sales of real estate properties*4 Profit + Depreciation - Gain on sales of real estate properties

Mar. '16 Sep. '16 Sep. '16Period (amount) (%) Period (amount) (%) PeriodActual Actual Initial

forecast(*1)Operating Revenues 30,589 184 0.6% 30,773 213 0.7% 30,560

Property-related revenues 30,428 345 1.1% 30,773 213 0.7% 30,560Rent revenues 30,290 30,565Other lease business revenues 138 208

161 (161) (100.0)% - - -Operating Expenses 18,237 167 0.9% 18,405 125 0.7% 18,280

Property-related expenses (*2) 10,454 136 1.3% 10,591 71 0.7% 10,520Property management expenses 3,767 (248) (6.6)% 3,519

Property management costs 3,658 3,413Brokerage fees, etc. 109 106

Utilities expenses 2,543 165 6.5% 2,708Property and other taxes 2,789 146 5.3% 2,936Casualty insurance 58 0 (1.4)% 57Repairing expenses 1,101 79 7.2% 1,181Other expenses 194 (6) (3.5)% 187

NOI (*3) 19,973 209 1.0% 20,182 142 0.7% 20,040Depreciation 6,487 12 0.2% 6,500 10 0.2% 6,490

Property-related profits and losses (*3) 13,486 196 1.5% 13,682 142 1.1% 13,540Gross Operating Income 13,647 34 0.3% 13,682 142 1.1% 13,540

Administrative expenses 1,295 18 1.4% 1,314 54 4.3% 1,260Asset management fee 933 31 3.4% 964 64 7.2% 900Other administrative expenses 362 349

Operating Income 12,352 16 0.1% 12,368 88 0.7% 12,280Non-operating income 9 30

Interest income 4 0Other non-operating income 4 29

Non-operating expenses 1,545 1,440Interest expenses 1,347 (104) (7.7)% 1,243

153 (1) (0.7)% 152

5 5

Other non-operating expenses 39 39Ordinary Income 10,816 142 1.3% 10,958 148 1.4% 10,810Income before income taxes 10,816 10,958

Income taxes 62 11Profit 10,753 194 1.8% 10,947 147 1.4% 10,800Unappropriated retained earnings 10,785 10,979

FFO (*4) 17,079 368 2.2% 17,447

Dividend per unit 8,121 240 3.0% 8,361 111 1.3% 8,250

Amortization of investmentcorporation bond issuance costs

Term

Actual/Forecast

1,430

Gain on sales of real estate properties

Interest expenses on investmentcorporation bonds

→ change → ← change ←

(34) (2.4)%

<Factors that may increase or decrease property-related revenues>●Sep. ’16 Period➝ Mar. ’17 Period: Decrease in revenue due to seasonal factors, etc.

Increase due to tenant turnover and upward rent revision for the properties operating full term in Sep. ’16 and Mar. ’17 Periods.Increase due to the acquisition of property during Mar. ’17 Period (Kanazawa Kamitsutsumicho Building).

●Mar. ’17 Period➝ Sep. ’17 Period: Increase of revenue due to seasonal factors, etc.Increase due to tenant turnover and upward rent revision of the properties operating fullterm for Mar. ’17 and Sep. ’17 Periods.

<Factors that may increase or decrease property-related expenses (excluding depreciation)>● Sep. ’16 Period➝ Mar. ’17 Period: Decrease in expenses due to seasonal factors, etc.● Mar. ’17 Period➝ Sep. ’17 Period: Increase in expenses due to seasonal factors, etc.

Increase due to Property and other taxes for the property acquired in Mar. ’17 Period (Kanazawa Kamitsutsumicho Building).

*1 Excluding depreciation

*2 Excluding gain on sales of real estate properties

Financial Results for Sep. ’16 Period andForecasts for Mar. ‘17 and Sep. ’17 Periods

3

(In millions of yen [excluding items where the unit is specified])Mar. '16 Sep. '16 Mar. '17 Sep. '17Period Period Period Period

Actual/Forecast Actual → Change → Actual → Change → Forecast → Change → ForecastNumber of properties 68 68 69 69

Number of days 183 days 183 days 182 days 183 days

Operating Revenues 30,589 +184 30,773 (53) 30,720 +450 31,170

Property-related revenues 30,428 +345 30,773 (53) 30,720 +450 31,170

Gain on sales of real estate properties 161 (161) - - -

Operating Expenses 18,237 +167 18,405 (185) 18,220 +220 18,440

Expenses related to rent business (*1) 10,454 +136 10,591 (131) 10,460 +340 10,800

Depreciation 6,487 +12 6,500 (10) 6,490 (70) 6,420

Administrative expenses 1,295 +18 1,314 (44) 1,270 (60) 1,210

　(Asset management fee) 933 +31 964 (54) 910 (40) 870

NOI (*2) 19,973 +209 20,182 +77 20,260 +110 20,370

Property-related profits and losses (*2) 13,486 +196 13,682 +77 13,760 +190 13,950

Gross Operating Income 13,647 +34 13,682 +77 13,760 +190 13,950

Operating Income 12,352 +16 12,368 +121 12,490 +240 12,730

Non-operating income 9 +20 30 (30) - -

Non-operating expenses 1,545 (105) 1,440 (30) 1,410 (30) 1,380

　(Interest expenses) 1,500 (105) 1,395 (35) 1,360 (20) 1,340

Ordinary Income 10,816 +142 10,958 +121 11,080 +270 11,350

Profit 10,753 +194 10,947 +122 11,070 +270 11,340

Units outstanding 1,309,310 units 1,309,310 units 1,309,310 units 1,309,310 units

Dividend per unit 8,121 yen +240 yen 8,361 yen +99 yen 8,460 yen +200 yen 8,660 yen

Occupancy rate at period-end 98.3% +0.4% 98.7% (0.2)% 98.5%

Term

End of Mar. '16 End of Sep. '16Period Period

Assets

Ⅰ Current assets

Cash and deposits 24,904 22,546 (2,358)

Other current assets 553 716 163

Total current assets 25,457 23,263 (2,194)

Ⅱ Non-current assets

Property, plant and equipment

Buildings (including those held in trust) 343,382 344,936 1,553

Structures (including those held in trust) 3,833 3,899 65

Machinery and equipment (including that held in trust) 4,331 4,385 54

Land (including that held in trust) 602,202 602,320 117

Accumulated depreciation (99,711) (106,192) (6,480)

Total property, plant and equipment 854,039 849,349 (4,689)

Intangible assets

Leasehold rights, etc. (including those held in trust) 7,321 7,322 0

Total intangible assets 7,321 7,322 0

Investments and other assets

Investment securities 577 577 -

Long-term prepaid expenses, etc. 3,204 3,099 (104)

Total investments and other assets 3,781 3,676 (104)

Total non-current assets 865,141 860,348 (4,793)

Ⅲ Deferred assets

Investment corporation bond issuance costs 26 21 (5)

Total deferred assets 26 21 (5)

Total assets 890,626 883,633 (6,993)

Item Change Reason for the change

Balance Sheet for Sep. ’16 Period

4

Increase due to increase in rent revenues, decrease due to repayment of loans, etc.

Decrease due to receiving accrued consumption taxes refund, etc.

Increase due to the acquisition of properties and capital expenditure.

(In millions of yen)End of Mar. '16 End of Sep. '16

Period Period

Liabilities

Ⅰ Current liabilities

Short-term loans payable 22,700 45,700 23,000

Current portion of long-term loans payable 44,400 42,850 (1,550)

Current portion of investment corporation bonds - - -

Advances received 3,088 3,500 412

Other current liabilities 5,386 4,187 (1,199)

Total current liabilities 75,574 96,237 20,663

Ⅱ Non-current liabilities

Investment corporation bonds 20,000 20,000 -

Long-term loans payable 276,300 247,800 (28,500)

Deposits received from tenants 49,197 49,727 529

Other non-current liabilities 508 508 0

Total non-current liabilities 346,006 318,035 (27,970)

Total liabilities 421,581 414,273 (7,307)

Net assets

Unitholders' capital 458,016 458,016 -

Reserve for reduction entry 243 363 120

Unappropriated retained earnings 10,785 10,979 194

Total net assets 469,044 469,359 314

890,626 883,633 (6,993)Total liabilities and net assets


5

Increase due to refinancing from long-term loans and decrease due to repayment out of cash reserves.

Decrease due to repayment of loans and refinancing to short-term loans, increase due to transfer from long-term loans, etc.

Decrease due to payment of unpaid consumption tax, etc. for Mar. ’16 period and decrease in accrued construction costs.

Decrease due to transfer to current portion of long-term loans.

End of Sep. '16 End of Mar. '17Period Period

Assets

Ⅰ Current assets

Cash and deposits 22,546 24,079 1,533

Other current assets 716 618 (98)

Total current assets 23,263 24,697 1,434

Ⅱ Non-current assets

Property, plant and equipment

Buildings (including those held in trust) 344,936 349,518 4,582

Structures (including those held in trust) 3,899 4,018 119

Machinery and equipment (including those held in trust) 4,385 4,525 140

Land (including those held in trust) 602,320 603,115 795

Accumulated depreciation (106,192) (112,688) (6,496)

Total property,plant and equipment 849,349 848,488 (861)

Intangible assets

Leasehold rights, etc. (including those held in trust) 7,322 7,305 (17)

Total intangible assets 7,322 7,305 (17)

Investments and other assets

Investment securities 577 577 -

Long-term prepaid expenses, etc. 3,099 3,050 (49)

Total investments and other assets 3,676 3,627 (49)

Total non-current assets 860,348 859,420 (928)

Ⅲ Deferred assets

Investment corporation bond issuance costs 21 15 (6)

Total deferred assets 21 15 (6)

Total assets 883,633 884,132 499


6

Balance Sheet Forecast for Mar. ’17 Period

Increase due to the acquisition of properties and capital expenditure.

(In millions of yen)

End of Sep. '16 End of Mar. '17Period Period

Liabilities

Ⅰ Current liabilities

Short-term loans payable 45,700 42,700 (3,000)

Current portion of long-term loans payable 42,850 46,500 3,650

Current portion of investment corporation bonds - - -

Advances received 3,500 3,520 20

Other current liabilities 4,187 5,213 1,026

Total current liabilities 96,237 97,933 1,696

Ⅱ Non-current liabilities

Investment corporation bonds 20,000 20,000 -

Long-term loans payable 247,800 246,150 (1,650)

Deposits received from tenants 49,727 50,052 325

Other non-current liabilities 508 508 -

Total non-current liabilities 318,035 316,710 (1,325)

Total liabilities 414,273 414,643 370

Net assets

Unitholders' capital 458,016 458,016 -

Reserve for reduction entry 363 363 -

10,979 11,100 121

Total net assets 469,359 469,488 129

Total liabilities and net assets 883,633 884,132 499


Unappropriated retained earnings

7

Decrease due to refinancing to long-term loans.Decrease due to repayment of loans and refinancing to long-term loans, increase due to transfer from long-term loans.

Increase in accrued construction costs and decrease in unpaid consumption tax.

Increase due to refinancing of short-term loans and current portion of long-term loans, decrease due to transfer to current portion of long-term loans.Increase in deposits related to acquisition of new properties and new lease agreements.

(in yen)Sep. 16 Period

(183 days)10,979,760,350

69,530

10,947,140,910

32,688,970Retained earnings brought forward

Items

Unappropriated retained earnings

Reversal of reserve for reduction entry

Dividends paid

Dividend per unit: 8,361 yen for Sep. ’16 Period(Mar. ’16 Period: 8,121 yen)

Cash Flow and Dividend Statement for Sep. ’16 Period

Cash Flow Statement

Dividend Statement

8

(in millions of yen)Sep. 16 Period

(183 days)Cash flows from operating activities 17,280

Income before income taxes 10,958Depreciation 6,501Other (179)

Cash flows from investing activities (1,964)Cash flows from financing activities (17,673)

Proceeds from short-term loans payable 36,000Repayments of short-term loans payable (13,000)Proceeds from long-term loans payable - Repayments of long-term loans payable (30,050)Proceeds from investment corporation bonds - Redemption of investment corporation bonds - Payments for investment corporation bond issuance costs - Proceeds from issuance of investment units - Payments for investment unit issuance expenses - Dividends paid (10,623)

Net increase (decrease) in cash and cash equivalents (2,358)Cash and cash equivalents at beginning of period 24,904Cash and cash equivalents at end of period 22,546

Items

Historical Summary of Selected Financial Index in the Previous 5 Periods

9

<Definition of each index>

＊ROA = Ordinary income / Average of total assets during the periodFor calculation of the average, the total assets of beginning and end for the period is used.

＊ROE = Profit / Average of total assets during the periodFor calculation of the average, the total assets of beginning and end for the period is used.However, if the new unit is issued during the period, the following formula is used to calculate the average, with the number of days from the beginning of the period to the day prior to the day of new unit issuanceassumed to be A days and from the day of new unit issuance to the end of the period to be B days:(Net assets at the beginning of the period x A days + net assets at the end of the period x B days)/operating days (A + B days).

＊EOP equity ratio = EOP net assets / EOP total assets＊LTV (1) = EOP interest-bearing debt / EOP total assets＊LTV (2) = EOP interest-bearing debt / (EOP interest-bearing debt ＋ EOP unitholders' capital)＊LTV (3) = EOP interest-bearing debt / EOP total property acquisition price＊LTV (4) = EOP interest-bearing debt / EOP total property appraisal values determined by institutional appraisers＊EOP long-term debts to capitalization = EOP non-current assets / (EOP long-term loans and others ＋ EOP unitholders’ capital)＊DSCR = Profit before interest, taxes, depreciation and amortization / Interest expenses＊NOI = Property-related revenues – Property-related expenses + Depreciation＊NOI Yield = Annualized NOI / Total amount of acquisition price＊FFO = Profit + Depreciation – Gain (Loss) on sales of real estate properties＊FFO Dividends payout ratio = Total amount of dividends / FFO＊AFFO = FFO - Capital expenditures＊AFFO Dividend payout ratio = Total amount of dividends / AFFO

Sep. '14 Mar. '15 Sep. '15 Mar. '16 Sep. '16Period Period Period Period Period

Number of days 183 days 182 days 183 days 183 days 183 daysReturn on assets (ROA) 1.2% 1.2% 1.2% 1.2% 1.2%

(annualized) 2.3% 2.3% 2.4% 2.4% 2.5%Return on equity (ROE) 2.2% 2.2% 2.2% 2.3% 2.3%

(annualized) 4.4% 4.4% 4.5% 4.6% 4.7%EOP Equity ratio 53.6% 51.2% 52.1% 52.7% 53.1%LTV(1) 39.8% 42.3% 41.5% 40.8% 40.3%LTV(2) 43.1% 45.8% 44.9% 44.2% 43.8%LTV(3) 38.6% 40.9% 40.3% 39.4% 38.6%LTV(4) 38.4% 39.6% 38.2% 36.5% 35.2%EOP Long-term debts to capitalization 108.6% 108.4% 107.4% 107.6% 110.9%Debt service coverage ratio (DSCR) 10.5 times 10.8 times 12.1 times 12.5 times 13.5 timesNOI (in millions of yen) 18,105 18,412 19,670 19,973 20,182NOI yield (annualized) 4.3% 4.2% 4.2% 4.3% 4.4%FFO (in millions of yen) 15,455 15,629 16,808 17,079 17,447FFO dividend payout ratio 61.9% 61.5% 62.3% 62.3% 62.7%AFFO (in millions of yen) 13,716 12,396 15,668 14,203 15,834AFFO dividend payout ratio 69.8% 77.5% 66.9% 74.9% 69.1%

Term

05/01～03/02 04/02～09/02 10/02～03/03 04/03～09/03 10/03～03/04 04/04～09/04 10/04～03/05 04/05～09/05

Operating revenues 6,492 7,910 8,500 8,965 9,560 10,151 10,747 13,119(% change from the preceding period) － (+21.8%) (+7.5%) (+5.5%) (+6.6%) (+6.2%) (+5.9%) (+22.1%)Property-related revenues 6,492 7,910 8,500 8,965 9,560 10,151 10,747 13,119(% change from the preceding period) － (+21.8%) (+7.5%) (+5.5%) (+6.6%) (+6.2%) (+5.9%) (+22.1%)

－－－－－－－－

－－－－－－－－

Dividend income －－－－－－－－

－－－－－－－－

Operating income 2,961 3,386 3,687 3,898 4,341 4,358 4,701 6,226(% change from the preceding period) － (+14.4%) (+8.9%) (+5.7%) (+11.4%) (+0.4%) (+7.9%) (+32.4%)

Ordinary income 2,405 2,898 3,259 3,408 3,803 3,831 4,121 5,510(% change from the preceding period) － (+20.5%) (+12.5%) (+4.6%) (+11.6%) (+0.7%) (+7.6%) (+33.7%)

Profit 2,403 2,897 3,258 3,407 3,802 3,830 4,120 5,509(% change from the preceding period) － (+20.5%) (+12.5%) (+4.6%) (+11.6%) (+0.7%) (+7.6%) (+33.7%)

Units outstanding 160,400 units 225,400 units 225,400 units 225,400 units 260,400 units 260,400 units 260,400 units 345,400 units

(*1) 320,800 units 450,800 units 450,800 units 450,800 units 520,800 units 520,800 units 520,800 units 690,800 units

Dividend per unit 14,983 yen 12,853 yen 14,455 yen 15,117 yen 14,602 yen 14,711 yen 15,824 yen 15,951 yen

(*1) 7,491 yen 6,426 yen 7,227 yen 7,558 yen 7,301 yen 7,355 yen 7,912 yen 7,975 yen

Total assets 161,809 185,397 200,022 209,581 244,523 257,372 322,358 355,968Total net assets 83,663 115,049 115,410 115,559 137,250 137,279 137,569 206,982Net assets per unit (*1) 260,795 yen 255,212 yen 256,013 yen 256,344 yen 263,538 yen 263,592 yen 264,149 yen 299,627 yenTotal liabilities 78,146 70,347 84,611 94,021 107,272 120,093 184,789 148,985Interest-bearing debt 64,000 54,000 66,800 76,000 87,000 99,000 159,000 122,000LTV 39.6% 29.1% 33.4% 36.3% 35.6% 38.5% 49.3% 34.3%Unit price (period-end) (*1) 265,000 yen 255,500 yen 296,000 yen 324,000 yen 415,000 yen 437,500 yen 437,500 yen 457,500 yenMarket capitalization 85,012 115,179 133,436 146,059 216,132 227,850 227,850 316,041

Number of properties 24 27 30 32 36 39 46 50

144,697 164,277 183,542 192,607 218,437 239,827 290,510 326,560

Leasable space 201,884㎡ 215,928㎡ 236,693㎡ 246,062㎡ 273,157㎡ 293,105㎡ 336,026㎡ 364,610㎡

Occupancy rate 94.0% 95.3% 94.4% 95.1% 94.8% 93.6% 97.6% 98.6%

Issuance of new unitsNumber of newly issued units － 65,000 units －－ 35,000 units －－ 85,000 unitsOffer price － 490,980 yen －－ 629,000 yen －－ 826,000 yenAggregate amount of offer price － 31,913 －－ 22,015 －－ 70,210Issue price － 475,268 yen －－ 608,456 yen －－ 800,288 yenAggregate amount of issue price － 30,892 －－ 21,295 －－ 68,024

Payment date － 05/07/2002 －－ 10/24/2003 －－ 04/26/2005

Mar. '02

(Ref) Units outstanding on a post-split basis

(Ref) Dividend per unit on a post-split basis

Sep. '02 Mar. '03

Gain on transfer of unuseddevelopment rights of floor areaGain on sales of real estateproperties

Compensation for the propertytransfer

Sep. '03 Mar. '04 Sep. '04 Mar. '05 Sep. '05

Total acquisition price of properties

JRE’s Achievement after IPO and Performance Forecasts

10

10/05～03/06 04/06～09/06 10/06～03/07 04/07～09/07 10/07～03/08 04/08～09/08 10/08～03/09 04/09～09/09

13,962 15,570 16,960 17,530 25,743 19,805 20,716 21,524(+6.4%) (+11.5%) (+8.9%) (+3.4%) (+46.9%) (-23.1%) (+4.6%) (+3.9%)13,962 15,169 16,500 17,132 17,807 19,805 20,716 20,795

(+6.4%) (+8.6%) (+8.8%) (+3.8%) (+3.9%) (+11.2%) (+4.6%) (+0.4%)

－－－－－－－ 728

－ 400 459 397 －－－－

－－－－ 7,935 －－－

－－－－－－－－

6,319 7,041 8,304 8,739 14,218 9,807 9,955 10,054(+1.5%) (+11.4%) (+17.9%) (+5.2%) (+62.7%) (-31.0%) (+1.5%) (+1.0%)

5,586 5,977 7,184 7,586 12,946 8,449 8,426 8,505(+1.4%) (+7.0%) (+20.2%) (+5.6%) (+70.7%) (-34.7%) (-0.3%) (+0.9%)

5,585 5,976 7,183 7,585 12,945 8,448 8,425 8,504(+1.4%) (+7.0%) (+20.2%) (+5.6%) (+70.7%) (-34.7%) (-0.3%) (+0.9%)

345,400 units 345,400 units 410,000 units 410,000 units 443,000 units 443,000 units 443,000 units 443,000 units

690,800 units 690,800 units 820,000 units 820,000 units 886,000 units 886,000 units 886,000 units 886,000 units

16,172 yen 17,302 yen 17,521 yen 18,500 yen 29,223 yen 19,072 yen 19,020 yen 19,198 yen


433,552 441,163 443,973 449,643 527,537 542,920 565,022 564,528207,058 207,449 271,867 272,269 310,547 306,050 306,027 306,106

299,737 yen 300,302 yen 331,545 yen 332,035 yen 350,504 yen 345,429 yen 345,403 yen 345,492 yen226,493 233,714 172,105 177,374 216,990 236,869 258,994 258,422196,500 202,500 140,000 144,500 177,500 199,500 220,500 220,500

45.3% 45.9% 31.5% 32.1% 33.6% 36.7% 39.0% 39.1%510,000 yen 500,000 yen 780,000 yen 690,000 yen 580,000 yen 418,000 yen 378,000 yen 367,000 yen

352,308 345,400 639,600 565,800 513,880 370,348 334,908 325,162

52 49 50 50 53 54 55 55

412,766 418,693 441,276 446,940 518,969 542,969 564,219 564,219

400,090㎡ 396,173㎡ 397,928㎡ 406,605㎡ 479,877㎡ 508,296㎡ 516,411㎡ 516,421㎡

98.7% 98.2% 97.8% 98.7% 95.9% 96.1% 95.5% 93.3%

－－ 64,600 units － 33,000 units －－－

－－ 1,009,400 yen － 1,029,000 yen －－－

－－ 65,207 － 33,957 －－－

－－ 978,500 yen － 997,500 yen －－－

－－ 63,211 － 32,917 －－－

－－ 10/24/2006 － 03/12/2008 －－－

Mar. '06 Sep. '06 Mar. '07 Sep. '07 Mar. '08 Sep. '08 Mar. '09 Sep. '09

（In millions of yen [excluding items where the unit is specified]）

11

• The land and building adjacent to Ryoshin Ginza East Mirror Building are not included in the number of properties and total acquisition price of properties for Sep. ’08 through Mar. ’10 Periods.

• The acquisition price related to the transfer of the part of Jingumae Media Square Building site is not excluded.

• As Nippon Brunswick (building) was sold as of August 23, 2013 and JRE owns the land with leasehold interest, leasable space and occupancy rate for Nippon Brunswick are excluded.

(*1) JRE implemented a 2-for-1 split of each investment unit as of January 1, 2014. The figures for Mar. ’02 through Sep. ’13 Periods have taken the split into account.

12

10/09～03/10 04/10～09/10 10/10～03/11 04/11～09/11 10/11～03/12 04/12～09/12 10/12～03/13 04/13～09/13

Operating revenues 21,665 22,112 22,135 22,829 24,059 24,222 25,357 26,225(% change from the preceding period) (+0.7%) (+2.1%) (+0.1%) (+3.1%) (+5.4%) (+0.7%) (+4.7%) (+3.4%)Property-related revenues 20,758 22,112 22,135 22,283 24,059 24,222 25,357 26,206(% change from the preceding period) (-0.2%) (+6.5%) (+0.1%) (+0.7%) (+8.0%) (+0.7%) (+4.7%) (+3.4%)

－－－－－－－－

885 －－ 546 －－－ 18

Dividend income －－－－－－－－

21 －－－－－－－

Operating income 10,538 9,939 9,802 10,380 10,786 10,212 10,631 10,781(% change from the preceding period) (+4.8%) (-5.7%) (-1.4%) (+5.9%) (+3.9%) (-5.3%) (+4.1%) (+1.4%)

Ordinary income 8,876 8,135 7,938 8,603 8,863 8,372 8,749 9,143(% change from the preceding period) (+4.4%) (-8.3%) (-2.4%) (+8.4%) (+3.0%) (-5.5%) (+4.5%) (+4.5%)

Profit 8,875 8,134 7,652 8,268 8,934 8,448 8,824 9,129(% change from the preceding period) (+4.4%) (-8.4%) (-5.9%) (+8.1%) (+8.1%) (-5.4%) (+4.5%) (+3.5%)

Units outstanding 489,200 units 489,200 units 489,200 units 489,200 units 549,040 units 549,040 units 594,140 units 594,140 units

(*1) 978,400 units 978,400 units 978,400 units 978,400 units 1,098,080 units 1,098,080 units 1,188,280 units 1,188,280 units

Dividend per unit 18,043 yen 16,628 yen 15,642 yen 15,850 yen 16,190 yen 15,700 yen 15,140 yen 15,366 yen

(*1) 9,021 yen 8,314 yen 7,821 yen 7,925 yen 8,095 yen 7,850 yen 7,570 yen 7,683 yen

Total assets 637,326 634,974 646,847 643,949 703,085 724,851 765,628 775,066Total net assets 333,228 332,536 332,054 332,670 372,869 372,429 405,280 405,415Net assets per unit (*1) 340,585 yen 339,877 yen 339,385 yen 340,014 yen 339,565 yen 339,164 yen 341,065 yen 341,178 yenTotal liabilities 304,097 302,437 314,793 311,279 330,215 352,422 360,347 369,651Interest-bearing debt 262,500 262,450 272,400 269,350 284,300 305,750 311,200 320,150LTV 41.2% 41.3% 42.1% 41.8% 40.4% 42.2% 40.6% 41.3%Unit price (period-end) (*1) 398,500 yen 379,500 yen 393,500 yen 377,000 yen 364,500 yen 393,000 yen 644,500 yen 574,000 yenMarket capitalization 389,892 371,302 385,000 368,856 400,250 431,545 765,846 682,072

Number of properties 55 55 57 56 57 58 60 62

641,245 643,891 660,601 657,863 718,663 740,663 782,433 794,230

Leasable space 566,277㎡ 567,612㎡ 588,984㎡ 584,964㎡ 629,761㎡ 645,787㎡ 700,759㎡ 713,180㎡

Occupancy rate 93.0% 92.4% 93.2% 94.6% 94.7% 95.5% 96.7% 96.3%

Issuance of new unitsNumber of newly issued units 46,200 units －－－ 59,840 units － 45,100 units －

Offer price 597,520 yen －－－ 672,750 yen － 746,850 yen －

Aggregate amount of offer price 27,605 －－－ 40,257 － 33,682 －

Issue price 579,040 yen －－－ 652,050 yen － 723,870 yen －

Aggregate amount of issue price 26,751 －－－ 39,018 － 32,646 －

Payment date 12/08/200912/22/2009 －－－

02/28/201203/27/2012 －

10/29/201211/28/2012 －

(Ref) Units outstanding on a post-split basis

(Ref) Dividend per unit on a post-split basis

Gain on transfer of unuseddevelopment rights of floor areaGain on sales of real estateproperties

Compensation for the propertytransfer

Mar. '10 Sep. '10 Mar. '11

Total acquisition price of properties

Sep. '11 Mar. '12 Sep. '12 Mar. '13 Sep. '13

13

• The land and building adjacent to Ryoshin Ginza East Mirror Building are not included in the number of properties and total acquisition price of properties for Sep. ’08 through Mar. ’10 Periods.

• The acquisition price related to the transfer of the part of Jingumae Media Square Building site is not excluded.

• As Nippon Brunswick (building) was sold as of August 23, 2013 and JRE owns the land with leasehold interest, leasable space and occupancy rate for Nippon Brunswick are excluded.

(*1) JRE implemented a 2-for-1 split of each investment unit as of January 1, 2014. The figures for Mar. ’02 through Sep. ’13 Periods have taken the split into account.

（In millions of yen [excluding items where the unit is specified]）

10/13～03/14 04/14～09/14 10/14～03/15 04/15～09/15 10/15～03/16 04/16～09/16 10/16～03/17 04/17～09/17

26,582 27,760 28,314 29,980 30,589 30,773 30,720 31,170(+1.4%) (+4.4%) (+2.0%) (+5.9%) (+2.0%) (+0.6%) (-0.2%) (+1.5%)26,582 27,760 28,314 29,980 30,428 30,773 30,720 31,170

(+1.4%) (+4.4%) (+2.0%) (+5.9%) (+1.5%) (+1.1%) (-0.2%) (+1.5%)

－－－－－－－－

－－－－ 161 －－－

－－－－－－－－

－－－－－－－－

10,831 11,255 11,243 12,054 12,352 12,368 12,490 12,730(+0.5%) (+3.9%) (-0.1%) (+7.2%) (+2.5%) (+0.1%) (+1.0%) (+1.9%)

9,083 9,582 9,625 10,487 10,816 10,958 11,080 11,350(-0.7%) (+5.5%) (+0.4%) (+9.0%) (+3.1%) (+1.3%) (+1.1%) (+2.4%)

9,070 9,572 9,619 10,476 10,753 10,947 11,070 11,340(-0.7%) (+5.5%) (+0.5%) (+8.9%) (+2.6%) (+1.8%) (+1.1%) (+2.4%)

1,188,280 units 1,251,530 units 1,251,530 units 1,309,310 units 1,309,310 units 1,309,310 units 1,309,310 units 1,309,310 units

－－－－－－－－


－－－－－－－－

817,130 813,931 852,679 899,938 890,626 883,633 －－

405,355 436,622 436,671 468,767 469,044 469,359 －－

341,128 yen 348,871 yen 348,909 yen 358,026 yen 358,238 yen 358,478 yen －－

411,774 377,308 416,007 431,171 421,581 414,273 －－

358,900 323,550 361,000 373,450 363,400 356,350 －－

43.9% 39.8% 42.3% 41.5% 40.8% 40.3% －－

518,000 yen 564,000 yen 565,000 yen 551,000 yen 650,000 yen 605,000 yen －－

615,529 705,862 707,114 721,429 851,051 792,132 －－

64 64 68 70 68 68 69 69

837,405 838,055 883,514 927,778 923,448 923,623 926,403 926,403

750,956㎡ 752,723㎡ 793,976㎡ 832,030㎡ 820,381㎡ 820,917㎡ 827,751㎡ 827,751㎡

96.7% 97.8% 97.8% 97.7% 98.3% 98.7% 98.5% －

－ 63,250 units － 57,780 units －－－－

－ 501,760 yen － 557,620 yen －－－－

－ 31,736 － 32,219 －－－－

－ 486,400 yen － 540,550 yen －－－－

－ 30,764 － 31,232 －－－－

－04/15/201405/14/2014 －

04/06/201505/11/2015 －－－－

Sep. '17 forecastSep. '16 Mar. '17 forecastMar. '14 Sep. '14 Mar. '15 Sep. '15 Mar. '16

(In millions of yen）

＜Main factors affecting increase and decrease of Repairing Expenses＞

* Please refer to the “Property Data” (excel file) downloadable from the top page of JRE website (http://www.j-re.co.jp/en/),

“Financial Results” in the center right for performance comparison by building for Sep. ’16 Period.

＊Asset Group A＊68 properties operated all through Mar. ’16 and Sep. ’16 Periods (including Nippon Brunswick (Land with leasehold interest) and Nishiki Park (existing shares)).

＊Asset Group C＊2 properties transferred during Mar. ’16 Period

(Hirokoji Sakae, Kyoto Kawaramachi)

Factors affecting increase and decrease in each group

Performance Comparison (Mar. ’16 Period vs Sep. ’16 Period)

＊Asset Group B＊1 property acquired during Sep. ’16 Period(Nishiki Park (additional acquisition))

Increase and decrease in the entire portfolio=The total sum of groups A・B・C below

14

(*1) Property-related Expenses include Depreciation. (*2) NOI = Net Operating Income: Property-related Profits and Losses + Depreciation

Mar. '16Period

Sep. '16Period Change

%Change

Property-related Revenues 30,428 30,773 345 1.1%Property-related Expenses (*1) 16,941 17,091 149 0.9%Property-related Profits and Losses 13,486 13,682 196 1.5%NOI (*2) 19,973 20,182 209 1.0%Occupancy Rate as of the end of Period 98.3% 98.7% 0.4%Average Occupancy Rate during Period 98.0% 98.3% 0.3%

Mar. '16Period


%Change

Property-related Revenues 30,207 30,759 552 1.8%Property-related Expenses 16,792 17,072 280 1.7%

Property Management Expenses 3,733 3,517 (216) (5.8)%Property Management Costs 3,624 3,411 (213) (5.9)%Brokerage Fees, etc. 108 106 (2) (2.7)%

Utilities Expenses 2,515 2,706 191 7.6%Property and Other Taxes 2,750 2,925 175 6.4%Casualty Insurance 58 57 0 (0.5)%Repairing Expenses 1,092 1,180 88 8.1%Other Expenses 194 187 (7) (3.6)%Depreciation 6,448 6,497 49 0.8%

Property-related Profits and Losses 13,414 13,686 271 2.0%NOI 19,863 20,184 321 1.6%Occupancy Rate as of the end of Period 98.3% 98.7% 0.4%Average Occupancy Rate during Period 98.1% 98.3% 0.2%

Name of Building Difference

Shibuya Cross Tower 285Nagoya Hirokoji 132AER 25Akasaka Park (52)MM Park (49)Midosuji Daiwa (36)

Mar. '16Period

Sep. '16Period

Change

Property-related Revenues 220 2 (218)Property-related Expenses 149 11 (137)Property-related Profits and Losses 71 (9) (81)NOI 110 (9) (120)

Mar. '16Period

Sep. '16Period

Change

Property-related Revenues 0 12 12Property-related Expenses 0 6 6Property-related Profits and Losses 0 5 5NOI 0 8 8

Main Factors affecting Increase and Decrease


Increase in revenues:¥ 345 million

Property-related revenues

Property-related expenses

Property-related profits and losses

Factors affecting Increase and Decrease

15

Increase in expenses: ¥ 149 million

Increase in profits: ¥ 196 million

Best 5

Worst 5

Name of BuildingMar. '16Period


%Change

Shiodome 1,748 1,885 136 7.8%Nagoya Hirokoji 577 662 85 14.8%Shinjuku Eastside 574 658 83 14.4%Shin-Fujita 639 684 44 7.0%MM Park 1,277 1,320 43 3.4%TIX UENO 681 651 (30) (4.5)%Jingumae MS 188 166 (22) (12.0)%Shibuya Cross Tower 1,410 1,398 (12) (0.9)%Hinode Tenjin 169 159 (10) (6.0)%Clover Shiba-koen 110 100 (9) (9.0)%

(In millions of yen)Mar. '16 Sep. '16 Mar. '17 Sep. '17Period Period Period PeriodActual Actual Forecast Forecast

Operating Revenues 30,589 30,773 30,720 31,170

Mar. '16→Sep. '16

Sep. '16→Mar. '17

Mar. '17→Sep. '17

Change 184 (53) 450Property-related Revenues 345 (53) 450

Existing Property(*) 552 (183) 460Property Acquired

12120 0

Property Transferred(218)

Gain on Sales of Real estate Properties (161)

Mar. '16 Sep. '16 Mar. '17 Sep. '17Period Period Period PeriodActual Actual Forecast Forecast

Operating Income 12,352 12,368 12,490 12,730

Mar. '16→Sep. '16

Sep. '16→Mar. '17

Mar. '17→Sep. '17

Change 16 121 240Property-related Profits and Losses 196 77 190

Existing Property(*) 271 37 200Property Acquired

530 (10)

Property Transferred(81)

Gain on Sales of Real estate Properties (161)Administrative Expenses (18) 44 60

Mar. '16 Period

Sep. '16 PeriodMar. '17 Period

Sep. '16 PeriodMar. '17 Period

Mar. '16 Period

(*) Comparison made from the second term after the whole period operation (6 months) on condition of the same shares.

Breakdown of Factors in the Net Increase of Operating Revenues and Operating Income

16

・50 properties held as of the beginning of Sep. '12 PeriodExcluded 2 properties already transferred, Nippon Brunswick (land with leasehold interest), Ebisu Neonato, Nishiki Park, Harmony Tower and Shiodome from 57 properties

・51 properties held as of the beginning of Sep. '13 PeriodExcluded 2 properties already transferred, Nippon Brunswick (land with leasehold interest), Ebisu Neonato, Harumi Front, Higashi Nibancho, Nishiki Park, Harmony Tower and Shiodome from 60 properties

・55 properties held as of the beginning of Sep. '14 PeriodExcluded 2 properties already transferred, Nippon Brunswick (land with leasehold interest), Queen's, Ebisu Neonato, Otemachi FCN, Nishiki Park, Harmony Tower and Shiodome from 64 properties

・59 properties held as of the beginning of Sep. '15 PeriodExcluded 2 properties already transferred, Nippon Brunswick (land with leasehold interest), Clover Shiba-koen, Ginza 1Chome, Harmony Tower, Amagasaki Front, Umeda Square, Shiodome and Nishiki Park from 69 properties

Average Occupancy Rate during the Period Property-related Revenues

NOI YieldRevenues / Average Occupancy Rate during the Period

Historical NOI Yield (Investment Yield)

Historical Property- related Revenues, Occupancy Rate, NOI Yield (Properties with constantly held Shares of Ownership)

● Comparison of JRE’s portfolio of properties with constantly held shares of ownership throughout the year and on which JRE has paid property and city planning taxes● Property-related revenues are scaled as 100 at the end of each period (starting point).

* NOI Yield = Annualized NOI/Acquisition Price

Continue to maintain at a high level. Continue to show improvement.

17

Finally bottoming out after the continuous trend of decrease in revenue per unit due to tenant turnover and other factors. Continue to show an improving tendency.

Sep. '12 Mar. '13 Sep. '13 Mar. '14 Sep. '14 Mar. '15 Sep. '15 Mar. '16 Sep. '16Period Period Period Period Period Period Period Period Period

Property-related revenues 100.0 100.2 100.3 98.9 98.9 99.0 99.7 99.9 101.2Average occupancy rate 94.9% 95.9% 96.4% 95.8% 97.6% 97.8% 97.7% 98.3% 98.4%

Acquisition price ¥ 614 billion NOI Yield 4.32% 4.38% 4.25% 4.19% 4.17% 4.17% 4.21% 4.25% 4.29%Property-related revenues 100.0 98.7 98.6 98.6 99.4 99.6 100.7Average occupancy rate 96.5% 95.8% 97.6% 97.8% 97.8% 98.4% 98.3%

Acquisition price ¥ 636 billion NOI Yield 4.27% 4.22% 4.19% 4.18% 4.23% 4.27% 4.30%Property-related revenues 100.0 100.3 101.0 101.2 102.4Average occupancy rate 97.3% 97.9% 97.9% 98.3% 98.3%

Acquisition price ¥ 690 billion NOI Yield 4.31% 4.34% 4.36% 4.42% 4.44%Property-related revenues 100.0 100.6 102.1Average occupancy rate 97.8% 98.3% 98.3%

Acquisition price ¥ 760 billion NOI Yield 4.33% 4.40% 4.46%

50 properties held as of thebeginning of Sep. '12 Period




*In Operating revenues, Extraordinary income is included in Mar. ’12 Period, Gain on sales of real estate properties is included in Sep. ’13and Mar. ’16 Periods.

18

Breakdown of Operating Revenues

Mar. '12 Sep. '12 Mar. '13 Sep. '13 Mar. '14 Sep. '14 Mar. '15 Sep. '15 Mar. '16 Sep. '16Period Period Period Period Period Period Period Period Period Period

Operating revenues 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Property management expenses 11.9% 11.9% 12.1% 11.7% 12.2% 12.2% 12.2% 11.8% 12.3% 11.4%

Utilities expenses 7.5% 8.4% 8.2% 9.3% 9.1% 10.0% 9.5% 9.6% 8.3% 8.8%

Property and other taxes 8.6% 9.5% 9.1% 9.0% 8.8% 9.1% 8.9% 9.2% 9.1% 9.5%

Casualty insurance 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2%

Repairing expenses 2.9% 3.2% 3.5% 3.3% 3.3% 2.6% 3.5% 2.9% 3.6% 3.8%

Depreciation 19.5% 20.3% 20.5% 21.0% 21.3% 21.2% 21.2% 21.1% 21.2% 21.1%

Other expenses 0.8% 0.8% 0.8% 0.8% 0.6% 0.7% 0.7% 0.6% 0.6% 0.6%

Administrative expenses 3.7% 3.6% 3.7% 3.6% 3.8% 3.5% 4.1% 4.3% 4.2% 4.3%

Non-operating profits and losses 8.0% 7.6% 7.4% 6.2% 6.6% 6.0% 5.7% 5.2% 5.0% 4.6%

Income taxes (0.1)% (0.3)% (0.3)% 0.1% 0.0% 0.0% 0.0% 0.0% 0.2% 0.0%

Extraordinary loss 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Profit 37.1% 34.9% 34.8% 34.8% 34.1% 34.5% 34.0% 34.9% 35.2% 35.6%

Trend in Property Management Costs and Utilities Expenses

19

Achieved steady cost reduction by reviewing the management system and renewing facilities

Comparison of JRE’s portfolio with constantly held shares of ownership in which no increase or decrease (including transfer) of shares has been seen since the ends of Mar. ’02 and Mar. ’06 Periods.

The trend sets the property management costs and utilities expenses as of the ends of Mar. ’02 and Mar. ’06Periods (the start of each trend) at 100.

* Brokerage fees, etc. are excluded from the property management costs.

13 properties held as of the end of the

Mar. ’02 Period

35 properties held as of the end of Mar. ’06 Period

Past Record of Capital Expenditure and Repairing Expenses for Renovation Work and Future Plan

JRE’s Renovation Work

Construction Costs and Depreciation (Actual)

Capital Expenditure and Depreciation (Forecast)

20

Prepared mid- to long-term renovation plans, taking stable cash flow into account

Conducted renovation work that increases profitability through such efforts as reducing costs and attracting tenants

Conducted customer service renovation work that improves amenities for tenants, including work to improve air-conditioning systems and restrooms

Conducted appropriate renovations to maintain building functions

Had a third-party review on the construction estimates and costs (orders placed), and carried out proper construction management

*Property-related revenues do not include gain on sales of real estate properties, dividends earned on preferred capital contributions, gain on the transfer of development rights of floor area nor compensation for property transfer.



Construction costs 794 453 933 841 1,585 1,161 1,178 1,025 1,728 1,654　Repairing expenses (reported as expense) 321 152 323 289 365 363 471 474 528 513　Capital expenditure (capitalized as asset) 472 301 609 552 1,219 797 706 550 1,200 1,141Depreciation 1,100 1,194 1,310 1,393 1,498 1,657 1,641 2,017 2,359 2,682Total assets 161,809 185,397 200,022 209,581 244,523 257,372 322,358 355,968 433,552 441,163Property-related revenues 6,492 7,910 8,500 8,965 9,560 10,151 10,747 13,119 13,962 15,169


Construction costs 2,857 1,520 2,760 1,138 1,721 2,309 2,074 1,563 2,315 1,328　Repairing expenses (reported as expense) 916 580 991 511 676 1,119 756 790 833 585　Capital expenditure (capitalized as asset) 1,940 939 1,769 627 1,044 1,190 1,318 773 1,481 743Depreciation 2,717 2,835 3,068 3,560 3,788 3,801 3,945 4,218 4,286 4,433Total assets 443,973 449,643 527,537 542,920 565,022 564,528 637,326 634,974 646,847 643,949Property-related revenues 16,500 17,132 17,807 19,805 20,716 20,795 20,758 22,112 22,135 22,283


Construction costs 2,493 2,227 2,741 2,411 3,320 2,472 4,216 2,021 3,977 2,794　Repairing expenses (reported as expense) 700 764 886 866 887 733 983 881 1,101 1,181　Capital expenditure (capitalized as asset) 1,792 1,463 1,854 1,545 2,433 1,738 3,233 1,140 2,876 1,613Depreciation 4,690 4,908 5,208 5,507 5,649 5,883 6,009 6,332 6,487 6,500Total assets 703,085 724,851 765,628 775,066 817,130 813,931 852,679 899,938 890,626 883,633Property-related revenues 24,059 24,222 25,357 26,206 26,582 27,760 28,314 29,980 30,428 30,773

(In billions of yen)

Mar. '17 Sep. '17 Mar. '18 Sep. '18 Mar. '19 Sep. '19Period Period Period Period Period Period

Capital expenditure 2.8 1.4 2.7 1.9 1.9 1.7 12.6Depreciation 6.4 6.4 6.4 6.3 6.2 6.2 38.1

Total

21

Repair work expenses, capital expenditure, depreciation (Actual)

Ratio of repair work expenses, capital expenditure, depreciation in total assets

Ratio of repair work expenses, capital expenditure, depreciation in property-related revenues

JRE Growth Strategy

Market Environment and Growth Strategy (Image)

22

MEMO

質を重視した着実な外部成⻑

上場来の継続努⼒による内部成⻑

External Growth

Internal Growth

23

Continue to keep stable occupancy ratesStrong awareness of tenant needsImplement a constructive leasing strategy to meet the characteristics of each building and changes in the market

Enhance rental incomesContinuous efforts to rise rent levelsOngoing efforts to carry out the property management cost reduction plan

Enhance the value of propertiesConduct timely renovation work

Secure steady external growth by strengthening the collaborationwith two sponsors Acquire properties by negotiated transactions mainly with two sponsors Work to diversify the property acquisition processes

Continued efforts to strengthen portfolio quality Acquire relatively new, large-scale competitive properties that generate stable revenues Weigh the external environment and our financial standing in acquiring properties Consider possibilities for reshuffling of assets that could strengthen the portfolio quality on

a mid- to long-term basis by comprehensively examining leasing market conditions, traffic convenience, and other factors

Steady external growth with a focus on quality

Internal growth by our continuous efforts since IPO

Maintain conservative interest-bearing debt / total assets ratio and high credit ratings by strengthening the capital baseGain and maintain debtholders’ trustAcquire a low-cost and long-term fund raising capabilitySecure flexibility in fundraising by limiting the covenants or other restrictive terms of financing

Appropriate response to interest riskMaintain conservative interest-bearing debt / total assets ratio(cruising speed of 30-40% level)Lengthen the term of interest-bearing debt , stabilize the interest rate and diversify repayment dates

Management Principles

2. Internal Growth

・Net increase of monthly contract rent (including common service charges) and the rates of net increase (%) are shown in comparison with those of the end of the previous period (prior six months).

・Data for residential portions are excluded.

Factors in the Net Increase of Monthly Contract Rent

11

+¥44 million（+1.0％）Increase

Rent Revision

+¥18 million

Leased

111(+2.5％)

Returned

87((1.9)%)

Increase

Decrease

Monthly rent as of the end of Mar. ʼ16 Period

¥4,529 million

Monthly rent as of the end of Sep. ʼ16 Period

¥4,574 million

Net increase of leased space

+2,695㎡

Newly leased space

＋18,450㎡

Returned space

(15,755)㎡


As of the end of Mar. ’16 Period

As of the end of Sep. ’16 Period

*The land revenue (10 million yen (monthly)) for Nippon Brunswick (land with leasehold interest) is not included in the monthly rent as of the end of each Period.

Total leased space

806,782㎡

Total leased space

809,962㎡

Net increase of leased space

+484㎡

Tenant turnover

+¥24 million

26

Acquisition1

(+0.0％)Nishiki Park (Additional)

Increase

19(+0.4％)

Reduction

0.6((0.0)%)

【Internal Growth】Change in

condition of rent+¥43 million

【External Growth】Property acquisition

+¥1 million

＊Lease agreements, rent levels within the range of market rent are contracts in which the rent level falls in the range of the upper and lower limits of the CBRE assessed rent. At the same time, lease agreements for special purposes, such as office space in the basement and machine rooms, etc., are included in this category.

67 properties held as of September 30, 2016

●Percentages represent the share of monthly rent in the entire portfolio. The numbers in parenthesis show the percentage of the share classified in the previous step.

●Long-and fixed-term lease agreements are contracts in which revenues are promised for a period of one year or longer from the end of Sep. ’16 Period. Regular lease agreements are contracts other than Long-and fixed-term lease agreements.

▲65

Monthly rent in the entire portfolio, including common service charges : ¥4,574 million

Comparison of Portfolio Rent vs Market Rent

＋70

▲95

27

*Nippon Brunswick (land with leasehold interest) is not included.

*Difference values that areexceeding market rent

The ratio of rent gapin the monthly rent: +0.3 %

Rent gap*: Total +12

①Classification by area

②Classification by typeof lease agreement

③Classification by comparison with market rent

Within 10%6.6% (45.7%)

Above market rentexceeding 10 %7.9 % (54.3 %)

Above market rentexceeding 10 %6.0 % (60.0 %)

Within 10%4.0% (40.0%)

＋102

(In millions of yen/month)

Trend of Market Rent Level

With regard to the new rent data (Note 1) assessed by CBRE K.K. (CBRE), the trend shows the price as of June 30, 2016 set at 100. The assessment was made for 60 properties. 7 properties are excluded (excluding properties in unusual situations, including single-tenant

leased properties) from the 67 properties (building) (Note 2) held in total by JRE as of September 30, 2016.

28

06/03 12/03 06/04 12/04 06/05 12/05 06/06 12/06 06/07 12/07 06/08 12/08 06/09Tokyo 23 Wards Chiyoda Genki Medical PlazaTokyo 23 Wards Chiyoda Kitanomaru Square 95Tokyo 23 Wards Chiyoda MD Kanda 127 127 127 131 137 137 157 157 171 177 160 143 120Tokyo 23 Wards Chiyoda Kandabashi Park 111 111 111 118 123 125 155 155 170 170 160 140 120Tokyo 23 Wards Chiyoda Otemachi FCNTokyo 23 Wards Chiyoda Nibancho GardenTokyo 23 Wards Chiyoda Mitsubishi UFJ TrustTokyo 23 Wards Chiyoda Burex KojimachiTokyo 23 Wards Chiyoda Sanno Grand 104 111 126 145 149 157 157 151 132 111Tokyo 23 Wards Chiyoda Yurakucho Denki 96 96 107 115 126 144 152 170 170 163 135 107Tokyo 23 Wards Chuo Kodenmacho 104 104 104 107 114 114 121 121 154 164 157 146 132Tokyo 23 Wards Chuo Kyodo (Kayabacho 2Chome)Tokyo 23 Wards Chuo Burex KyobashiTokyo 23 Wards Chuo Ginza 1ChomeTokyo 23 Wards Chuo Ginza Sanwa 116 124 129 135 145 145 143 112 98Tokyo 23 Wards Chuo Ryoshin Ginza EM 135 135 141 149 157 157 149 138 119Tokyo 23 Wards Chuo Harumi FrontTokyo 23 Wards Chuo Harumi Center 174 174 167 148Tokyo 23 Wards Minato Akasaka ParkTokyo 23 Wards Minato Aoyama Crystal 104 102 100 106 116 127 129 139 145 145 141 127 104Tokyo 23 Wards Minato Clover Shiba-koenTokyo 23 Wards Minato Shiodome 109Tokyo 23 Wards Minato Shiba 2Chome Daimon 121 121 121 136 150 154 161 164 171 175 175 164 143Tokyo 23 Wards Minato Cosmo Kanasugibashi 119 119 119 127 138 146 154 162 169 177 177 154 127Tokyo 23 Wards Shinjuku Shinjuku EastsideTokyo 23 Wards Shinjuku Shinwa 103 108 113 133 144 149 149 149 128 103Tokyo 23 Wards Shinjuku Tokyo Opera City 134 147 153 157 157 153 130 106Tokyo 23 Wards Taito TIX UENOTokyo 23 Wards Shinagawa Higashi-Gotanda 1Chome 123 137 137 140 140 147 153 153 153 140 127Tokyo 23 Wards Shinagawa Osaki Front TowerTokyo 23 Wards Ota Omori-Eki Higashiguchi 127 123 123 123 123 123 123 135 142 150 150 131 127Tokyo 23 Wards Shibuya Yoyogi 1Chome 122 136 150 156 158 161 161 139 111Tokyo 23 Wards Shibuya da Vinci Harajuku 131 125 125 125 125 142 142 142 142 142 142 136 111Tokyo 23 Wards Shibuya Jingumae MS 102 100 100 102 122 129 138 138 142 138 129 100Tokyo 23 Wards Shibuya Shibuya Cross Tower 87 87 87 98 104 118 136 136 140 140 131 115 84Tokyo 23 Wards Shibuya Ebisu Neonato 89 91 100 107 120 130 135 141 141 133 111 85Tokyo 23 Wards Nakano Harmony Tower 122 128 133 144 150 150 150 139 117Tokyo 23 Wards Toshima Otsuka Higashi-Ikebukuro 104 104 96 96 96 96 96 100 117 117 122 122 117Tokyo 23 Wards Toshima Ikebukuro 2Chome 98 98 98 98 100 100 104 104 112 112 112 112 108Tokyo 23 Wards Toshima Ikebukuro YS 103 110 117 127 133 137 137 137 130 110Other Areas Hachioji Hachioji First 114 114 114 114 114 118 118 114 105Other Areas Saitama Saitama Urawa 96 96 83 83 100 100 109 113 117 117 117 109 91Other Areas Yokohama MM Park 127 123 107Other Areas Yokohama Queen'sOther Areas Kawasaki Kawasaki Isago 108 104 104 104 104 104 104 104 108 108 108 104 96Other Areas Kawasaki Musashi Kosugi STM 100 94 88Other Areas Sapporo 8･3 Square Kita 96 100 100 100 96Other Areas Sendai Jozenji Park 121 124 132 132 132 134 134 134 118 111Other Areas Sendai Higashi NibanchoOther Areas Sendai Sendai Honma 156 150 144 144 147 156 156 156 159 159 159 144 131Other Areas Sendai AEROther Areas Kanazawa Kanazawa Park 104 100 100 100 100 98 110 110 110 110 108 100 92Other Areas Nagoya Nishiki Park 146 146 146 142 138 129Other Areas Nagoya Hirokoji PlaceOther Areas Nagoya Nagoya Hirokoji 135 135 135 135 135 143 143 143 143 143 143 139 135Other Areas Nagoya Nagoya Misono 150 150 150 150 159 153 153 153 153 153 147 147Other Areas Kyoto Shijo KarasumaOther Areas Osaka Umeda SquareOther Areas Osaka Shin-Fujita 127 123Other Areas Osaka Sakaisujihonmachi 144 139 122 122 128 139 150 161 161 161 156 144 128Other Areas Osaka Midosuji Daiwa 139 122 117 117 126 135 161 161 165 165 161 143 117Other Areas Amagasaki Amagasaki FrontOther Areas Okayama Lit City 93 93 93 93 93 90 90Other Areas Hiroshima NHK Hiroshima 93 93 93 96 107 107 107 111 111 111 104Other Areas Fukuoka Tosei Tenjin 105 100 95 95 95 95 100 100 105 105 105 105 95Other Areas Fukuoka Tenjin Crystal 108 108 113 113 113 113 108 96 88Other Areas Fukuoka Hinode Tenjin 108 92 85 85 85 88 96 96 96 96 96 96 88

Area Property Name Trend in assessed new rent (intermediate value of upper and lower limits:index) at time of survey

(Note 1) JRE requests CBRE to assess the new rent levels (between the range of upper and lower limits) regarding properties held by JRE on a semi-annual basis(June and December).

(Note 2) Nippon Brunswick (land with leasehold interest) is not included.

29

Assessed rent increased compared to the preceding assessment Assessed rent decreased compared to the preceding assessment

12/09 06/10 12/10 06/11 12/11 06/12 12/12 06/13 12/13 06/14 12/14 06/15 12/15 06/16Genki Medical Plaza Chiyoda Tokyo 23 Wards

89 86 84 81 81 81 84 88 91 93 95 96 98 100 Kitanomaru Square Chiyoda Tokyo 23 Wards

109 100 100 94 91 91 91 91 91 91 94 94 97 100 MD Kanda Chiyoda Tokyo 23 Wards108 100 93 88 85 85 88 88 88 88 90 93 98 100 Kandabashi Park Chiyoda Tokyo 23 Wards

95 95 96 99 100 Otemachi FCN Chiyoda Tokyo 23 WardsNibancho Garden Chiyoda Tokyo 23 WardsMitsubishi UFJ Trust Chiyoda Tokyo 23 WardsBurex Kojimachi Chiyoda Tokyo 23 Wards

102 94 89 89 85 85 85 85 85 87 89 94 98 100 Sanno Grand Chiyoda Tokyo 23 Wards100 94 93 91 87 87 87 89 89 89 91 94 96 100 Yurakucho Denki Chiyoda Tokyo 23 Wards

118 104 104 100 96 96 96 96 96 96 96 96 100 100 Kodenmacho Chuo Tokyo 23 Wards

103 100 100 100 100 100 100 100 100 100 100 Kyodo (Kayabacho 2Chome) Chuo Tokyo 23 WardsBurex Kyobashi Chuo Tokyo 23 Wards

100 100 100 Ginza 1Chome Chuo Tokyo 23 Wards98 88 84 82 82 82 82 84 88 90 92 94 96 100 Ginza Sanwa Chuo Tokyo 23 Wards

105 95 95 89 86 86 86 86 89 89 92 95 97 100 Ryoshin Ginza EM Chuo Tokyo 23 WardsHarumi Front Chuo Tokyo 23 Wards

137 122 119 115 100 96 96 96 96 96 100 100 100 100 Harumi Center Chuo Tokyo 23 Wards

84 84 84 86 88 90 92 94 98 100 Akasaka Park Minato Tokyo 23 Wards94 88 88 86 82 82 84 86 86 88 92 96 100 100 Aoyama Crystal Minato Tokyo 23 Wards

100 100 100 Clover Shiba-koen Minato Tokyo 23 Wards

98 93 90 88 88 88 90 90 91 93 97 97 98 100 Shiodome Minato Tokyo 23 Wards

121 104 96 96 93 93 93 93 93 93 93 93 96 100 Shiba 2Chome Daimon Minato Tokyo 23 Wards

119 104 96 96 92 92 92 92 92 92 92 92 100 100 Cosmo Kanasugibashi Minato Tokyo 23 Wards98 98 100 100 Shinjuku Eastside Shinjuku Tokyo 23 Wards

97 95 85 85 79 79 82 82 82 85 87 92 100 100 Shinwa Shinjuku Tokyo 23 Wards

102 98 98 96 89 87 87 85 87 91 94 96 98 100 Tokyo Opera City Shinjuku Tokyo 23 Wards

93 93 93 93 93 95 95 100 100 TIX UENO Taito Tokyo 23 Wards

113 103 100 97 90 90 90 90 90 90 90 93 97 100 Higashi-Gotanda 1Chome Shinagawa Tokyo 23 WardsOsaki Front Tower Shinagawa Tokyo 23 Wards

112 112 104 100 100 100 100 100 100 100 100 100 100 100 Omori-Eki Higashiguchi Ota Tokyo 23 Wards

106 103 97 92 89 89 89 89 89 89 92 94 97 100 Yoyogi 1Chome Shibuya Tokyo 23 Wards

103 100 97 97 97 97 97 97 97 97 97 100 100 100 da Vinci Harajuku Shibuya Tokyo 23 Wards

93 91 89 84 84 84 87 87 89 96 96 98 100 100 Jingumae MS Shibuya Tokyo 23 Wards80 80 80 80 76 78 80 84 87 91 95 96 98 100 Shibuya Cross Tower Shibuya Tokyo 23 Wards83 81 78 78 78 78 80 83 87 91 94 96 98 100 Ebisu Neonato Shibuya Tokyo 23 Wards

103 103 97 94 92 92 92 92 92 94 94 94 97 100 Harmony Tower Nakano Tokyo 23 Wards

109 109 109 100 87 87 87 87 87 87 91 96 100 100 Otsuka Higashi-Ikebukuro Toshima Tokyo 23 Wards

100 100 100 100 100 100 100 100 100 100 100 100 100 100 Ikebukuro 2Chome Toshima Tokyo 23 Wards103 103 97 97 97 97 97 97 97 97 97 97 100 100 Ikebukuro YS Toshima Tokyo 23 Wards100 100 100 91 91 91 91 91 91 91 95 100 100 100 Hachioji First Hachioji Other Areas

91 91 91 91 91 91 91 91 91 96 96 100 100 100 Saitama Urawa Saitama Other Areas

93 93 93 93 90 90 90 90 90 90 90 93 97 100 MM Park Yokohama Other Areas

81 82 85 88 97 100 Queen's Yokohama Other Areas

96 96 96 88 75 75 75 75 79 83 88 92 96 100 Kawasaki Isago Kawasaki Other Areas88 88 88 82 82 82 82 82 82 82 85 88 94 100 Musashi Kosugi STM Kawasaki Other Areas

96 96 96 96 93 93 93 93 93 93 93 95 96 100 8･3 Square Kita Sapporo Other Areas

105 105 105 105 100 100 100 100 100 100 100 100 100 100 Jozenji Park Sendai Other Areas

82 82 82 86 89 95 100 100 Higashi Nibancho Sendai Other Areas

125 113 106 106 100 100 100 100 100 100 100 100 100 100 Sendai Honma Sendai Other Areas97 100 AER Sendai Other Areas

88 88 88 88 88 88 88 88 88 88 88 92 100 100 Kanazawa Park Kanazawa Other Areas

121 104 104 100 100 96 94 94 94 96 96 96 100 100 Nishiki Park Nagoya Other Areas

100 100 100 100 100 100 Hirokoji Place Nagoya Other Areas

130 109 109 104 104 104 100 100 100 100 100 100 100 100 Nagoya Hirokoji Nagoya Other Areas141 124 124 112 112 100 100 94 94 97 97 97 100 100 Nagoya Misono Nagoya Other Areas

84 87 90 97 100 100 Shijo Karasuma Kyoto Other Areas

98 98 100 Umeda Square Osaka Other Areas108 96 96 96 96 96 96 96 96 96 96 96 100 100 Shin-Fujita Osaka Other Areas117 106 106 100 100 100 100 100 100 100 100 100 100 100 Sakaisujihonmachi Osaka Other Areas109 109 109 109 109 109 109 100 100 100 100 100 100 100 Midosuji Daiwa Osaka Other Areas

100 100 100 Amagasaki Front Amagasaki Other Areas

86 86 86 86 86 86 88 88 88 88 90 91 100 100 Lit City Okayama Other Areas

100 100 100 98 98 98 98 98 98 98 98 100 100 100 NHK Hiroshima Hiroshima Other Areas

90 90 90 88 88 88 88 88 88 88 88 95 100 100 Tosei Tenjin Fukuoka Other Areas

79 79 79 79 79 79 79 79 83 88 96 100 100 100 Tenjin Crystal Fukuoka Other Areas85 85 85 85 81 81 81 81 85 87 92 96 96 100 Hinode Tenjin Fukuoka Other Areas

AreaProperty NameTrend in assessed new rent (intermediate value of upper and lower limits:index) at time of survey

Net Increase of Monthly Contract Rent

Breakdown of net increase of rent due to external growth and internal growth

Breakdown of net increase of rent due to tenant turnover and rent revision

＊Percentages represent the rates of net increase of rent over monthly total portfolio contract rent (including common service charges) as of the end of the previous period (prior six months). Data for residential portions are excluded.

Sep. '09 Mar. '10 Sep. '10 Mar. '11 Sep. '11 Mar. '12 Sep. '12 Mar. '13 Sep. '13 Mar. '14 Sep. '14 Mar. '15 Sep. '15 Mar. '16 Sep. '16

Rate of net increase of rent over the end of the previous period ･･･Ⅰ＋Ⅱ -2.4% 13.3% -3.7% 3.2% -1.8% 7.9% 2.4% 6.6% -0.5% 5.3% 0.0% 4.9% 4.7% -0.3% 1.0%Net increase due to acquisition/transfer of properties ･･･Ⅰ(＝①＋②) 0.0% 15.7% 0.0% 3.9% 0.0% 10.7% 2.9% 7.8% 1.0% 6.1% 0.2% 4.8% 4.6% -0.7% 0.0%

Increase due to property acquisition ･･･① 0.0% 15.7% 0.0% 3.9% 0.0% 10.7% 2.9% 7.8% 2.0% 6.1% 0.2% 4.8% 4.6% 0.0% 0.0%Reduction due to property transfer ･･･② 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% -1.0% 0.0% 0.0% 0.0% 0.0% -0.7% 0.0%

Net increase due to change of leasing condition ･･･Ⅱ(＝③＋④) -2.4% -2.4% -3.7% -0.7% -1.8% -2.8% -0.5% -1.1% -1.5% -0.8% -0.1% 0.1% 0.1% 0.3% 0.9%Net increase due to tenant turnover ･･･③(＝ａ＋ｂ） -2.0% -1.2% -1.9% 0.1% -0.2% -1.8% 0.5% -0.1% -0.5% -0.5% 0.8% 0.5% -0.1% 0.1% 0.5%

Increase due to newly leased spaces ･･･ａ 2.6% 3.5% 3.9% 3.5% 6.7% 4.2% 3.4% 3.5% 2.0% 3.3% 2.8% 2.7% 1.5% 2.5% 2.5%Reduction due to returned spaces ･･･ｂ -4.6% -4.7% -5.8% -3.4% -7.0% -6.0% -3.0% -3.6% -2.5% -3.7% -2.0% -2.2% -1.6% -2.4% -1.9%

Net increase due to rent revision ･･･④(＝ｃ＋ｄ） -0.3% -1.2% -1.9% -0.9% -1.5% -1.0% -0.9% -1.0% -0.9% -0.3% -0.9% -0.4% 0.2% 0.2% 0.4%Increase due to rent revision ･･･ｃ 0.3% 0.0% 0.0% 0.0% 0.1% 0.1% 0.0% 0.4% 0.1% 0.1% 0.1% 0.1% 0.3% 0.3% 0.4%Reduction due to rent revision ･･･ｄ -0.6% -1.3% -1.9% -0.9% -1.6% -1.1% -1.0% -1.4% -1.0% -0.4% -1.1% -0.5% -0.1% -0.1% -0.0%

30

Breakdown of net increase of rent due to rent increase revision and rent reduction revision

The leasing market has bottomed out and started to grow. Meanwhile, the external growth has accelerated to achieve an asset size of 400 billion yen.

The level of external growth that more than compensated for the decline in contract rent in internal growth has been achieved.

The growth base shifted to internal growth because of the improvement in the leasing market performance.

Consistent external growth boosted asset size to 900 billion yen level.

A drop in contract rent became clear in response to the rapid deterioration of the leasing market.

Rent increase on revision of monthly rent

Rent reduction on revision of monthly rent

Entire portfolio / Trend of rent increase and reduction

(In thousands of yen・month)

Trend of Rent Revision

31

●Rent increase revision data for the Sep. ’05 Period or before are not listed due to insufficient samples.

(In thousands of yen-month)

(In thousands of yen-month)

Mar. '05 Sep. '05 Mar. '06 Sep. '06 Mar. '07 Sep. '07 Mar. '08 Sep. '08 Mar. '09 Sep. '09 Mar. '10 Sep. '10Period Period Period Period Period Period Period Period Period Period Period Period

Tokyo 23 Wards 646 1,706 4,979 35,780 15,600 17,771 11,006 4,326 258 1,169

Other Areas 32 109 6 1,560 1,685 2,329 1,191 4,391 954 165

Overall 678 1,815 4,986 37,341 17,286 20,101 12,198 8,718 1,213 1,335


Tokyo 23 Wards 288 1,004 443 1,319 10,004 374 888 2,616 4,258 11,413 11,209 15,851

Other Areas 588 121 1,467 184 4,935 2,809 1,741 2,976 1,503 995 2,030 3,204

Overall 876 1,125 1,911 1,503 14,940 3,184 2,630 5,593 5,761 12,409 13,239 19,056


Tokyo 23 Wards (22,157) (44,791) (25,312) (31,407) (40,836) (18,288) (10,405) (42,019) (17,784) (535) (145) (169)

Other Areas (7,865) (11,304) (10,908) (4,689) (11,179) (21,362) (5,702) (2,350) (3,534) (2,888) (2,702) (528)

Overall (30,022) (56,096) (36,221) (36,097) (52,016) (39,650) (16,108) (44,369) (21,318) (3,424) (2,847) (697)


Tokyo 23 Wards (2,179) (3,311) (393) (89) 0 (22) (350) (26) (2,218) (10,806) (27,211) (49,726)

Other Areas (7,213) (2,335) (2,337) (2,412) (383) (763) (63) (207) (1,159) (7,592) (11,155) (16,121)

Overall (9,392) (5,647) (2,731) (2,501) (383) (786) (413) (233) (3,378) (18,399) (38,366) (65,847)

Comparison of JRE’s portfolio of properties with constantly held shares of ownership in which no increase or decrease (including transfer) of shares has been seen since the ends of Mar. ’02 and Mar. ’06 Periods.

The trend sets the average rent based on the contracts as of the ends of Mar. ’02 and Mar. ’06 Periods (the start of trend) at 100.

Changes in Average Rent Level

32

Changes in Average Rent Level

MEMO



93.1

89.7

86.9

82.178.3

67.3

*Ratio of Annual Tenant Turnover is calculated using the following formula: the area for which tenants changed (the smaller of either the leased space or returned space during the year) ÷ ((area of leased space at the end of the period + area of leased space at the end of the period before the preceding period) × 1/2)

（m2）

Ratio of Annual Tenant Turnover

Status of Tenant Turnover (By Area and Rent Change)

Overall

Tokyo

23 Wards

Other

Areas

Trend in Area of Newly Leased & Returned Space and Rent Change Ratio

33

04/11〜

03/12

10/11〜

09/12

04/12〜

03/13

10/12〜

09/13

04/13〜

03/14

10/13〜

09/14

04/14〜

03/15

10/14〜

09/15

04/15〜

03/16

10/15〜

09/16

Tokyo 23 Wards 11.7% 9.8% 6.7% 6.2% 6.2% 5.6% 4.0% 3.1% 3.6% 4.3%

Other Areas 4.6% 4.2% 3.4% 4.5% 4.9% 5.8% 5.0% 5.1% 4.7% 4.0%

Overall 9.9% 8.2% 5.4% 5.6% 5.9% 5.7% 4.4% 4.0% 4.1% 4.1%

Average Vacancy Rate Computation (e.g., to compute the average rate for the following 2 properties)Leasable Space

(㎡)Ａ Building ① 　5,000 ④　3.0% Area A ⑦　4.0%Ｂ Building ② 　3,000 ⑤　6.0% Area B ⑧　8.0%

Total / Average ③　 8,000 ⑥　4.1% ⑨　5.5%⑥＝(①×④＋②×⑤) / ③ ⑨＝(①×⑦＋②×⑧) / ③

PropertyVacancy Rates

Office Areas* Vacancy Rates ofAreas*

Properties owned by JRE

Overall

Tokyo 23 Wards/Other Areas

Maintaining lower vacancy rate than the market

Trend in Vacancy Rate (Comparison with Market Vacancy Rate)

34

**

* JRE's properties which are not located in the areas reflected in the above CBRE K.K. data are excluded from the average vacancy rate fromJanuary 2013.

The data of CBRE K.K. reflects all office building properties in all of the researched areas until June 2011, and thereafter to December2012 reflects office building properties with total floor space of 500 tsubo or larger.Data from January 2013 and thereafter applys new area grouping and reflects office building properties with total floor space of 1,000 tsuboor larger and filling New Earthquake Resistance Standard.

Average vacancy rate is calculated by Japan Real Estate Asset Management Co., Ltd. using the data obtained from CBRE K.K.

3. External Growth

＜Exterior appearance＞＜Map＞

Location： 4-3, 2 Chome, Nishiki, Naka-ku, Nagoya City, Aichi Prefecture Area：＜Land＞ 2,170.45㎡＜Building＞ 25,091.91㎡ Structure： Steel-framed, steel-framed reinforced concrete, reinforced concrete structure, flat roof

Above ground : 22 floors Below ground : 4 floors Completion date： August 1995 Type of ownership：Real Property Land：Ownership (36,729/1,000,000 co-ownership of 1 lot :1,786.45 ㎡)

Building：Compartmentalized building units (share of co-ownership) 37,003/1,000,000 co-ownership from the 1st floor to the 20th floor in office and shop spaces : 13,296.06 ㎡

*Share of ownership of the building : 3.1047%*Changes in JRE’s share of ownership of the building after the acquisition of additional share：

68.63831%→71.74301% Leasable space： 487㎡（for additional share（3.1047%））

*JRE’s total share 10,338㎡ (after the additional acquisition) Occupancy rate： 96.3% *as of the end of Sep. ’16 Period

＜Estimated NOI＞ ¥ 14 million per year(Estimated under normal leasing operation)

＜Estimated Depreciation＞

Acquisition of an Additional Share for Sep. ’16 Period（Nagoya）

Nishiki Park Building

Estimation of NOI and DepreciationTransaction Summary

Property Summary (as of Acquisition date)

Seller： Three individuals Acquisition price： ¥ 175 million Appraisal value： ¥ 203 million

(as of March 1, 2016) Acquisition date： April 1, 201636

¥ 2 million per year(Estimated under normal leasing operation)

Acquisition for Mar. ’17 Period（Kanazawa）

37

＜Exterior appearance＞＜Map＞

Location : 1-15 Kamitsutsumicho, Kanazawa City, Ishikawa Prefecture Area : ＜Land＞ 1,561.80㎡＜Building＞ 9,619.96㎡ Structure： Steel structure, flat roof

Above ground：11 floors Completion date： August 2009 Type of ownership：Real Property Land：Ownership

Building：Ownership Leasable space： 7,206.64㎡ Occupancy rate： 97.7％


＜Estimated NOI＞


＜Estimated Depreciation＞

Kanazawa Kamitsutsumicho Building

Estimation of NOI and DepreciationTransaction Summary Seller： Shimizu Corporation Acquisition price： ¥ 2,780 million Appraisal value： ¥ 2,960 million

（as of September 1, 2016) Acquisition date： October 3, 2016

Property Summary (as of Acquisition date)

External Growth (Consideration of Property Acquisitions)

38

(In millions of yen)Performance of Property Acquisitions and Transfers

Trend of Property Information Constantly acquire the information of properties for sales asmuch as possible despite the intensification of investment market for real estate.

●Line graph is based on an index calculated by obtaining the moving average for the amount of property-related information obtained over the past six months and assigning that moving average as of January 2009 as 100 (left axis).

●Bar graph shows property-related information at the end of periods regarding a ratio of the number of properties with floor area over 3,000㎡ to the number of properties obtained over the past six months (right axis).

At IPO Mar. '02 Period Sep. '02 Period Mar. '03 Period Sep. '03 Period Mar. '04 Period Sep. '04 Period Mar. '05 Period Sep. '05 Period Mar. '06 Period Sep. '06 Period

～09/01 10/01～03/02 04/02～09/02 10/02～03/03 04/03～09/03 10/03～03/04 04/04～09/04 10/04～03/05 04/05～09/05 10/05～03/06 04/06～09/06

Acquisition 92,845 51,852 19,580 19,265 9,065 25,830 21,390 50,683 36,050 86,205 12,630

Transfer －－－－－－－－－－ 7,003

Mar. '07 Period Sep. '07 Period Mar. '08 Period Sep. '08 Period Mar. '09 Period Sep. '09 Period Mar. '10 Period Sep. '10 Period Mar. '11 Period Sep. '11 Period Mar. '12 Period

10/06～03/07 04/07～09/07 10/07～03/08 04/08～09/08 10/08～03/09 04/09～09/09 10/09～03/10 04/10～09/10 10/10～03/11 04/11～09/11 10/11～03/12

Acquisition 49,850 7,100 72,029 24,000 21,250 － 77,026 2,645 16,710 － 60,800

Transfer 41,900 1,770 －－－－ 1,507 －－ 3,160 －

Sep. '12 Period Mar. '13 Period Sep. '13 Period Mar. '14 Period Sep. '14 Period Mar. '15 Period Sep. '15 Period Mar. '16 Period Sep. '16 Period

04/12～09/12 10/12～03/13 04/13～09/13 10/13～03/14 04/14～09/14 10/14～03/15 04/15～09/15 10/15～03/16 04/16～09/16

Acquisition 22,000 41,770 12,967 43,174 650 45,459 44,263 － 175 967,267Transfer －－ 1,220 －－－－ 4,366 － 60,926

TOTAL

Apr. May Jun. Jul. Aug. Sep. Total Oct. Nov. Dec. Jan. Feb. Mar. Total

Tokyo Metropolitan Area 9 12 11 11 8 12 63 9 18 13 13 16 9 78 141 74.2%

Other Major Cities 5 6 3 3 5 0 22 2 6 5 7 5 2 27 49 25.8%

Total 14 18 14 14 13 12 85 11 24 18 20 21 11 105 190 100.0%

AreaSep. '15 Period Mar. '16 Period

Total %

Apr. May Jun. Jul. Aug. Sep. Total

Tokyo Metropolitan Area 10 10 15 16 19 10 80 71.4%

Other Major Cities 0 3 9 6 10 4 32 28.6%

Total 10 13 24 22 29 14 112 100.0%

AreaSep. '16 Period

%

The acquisition through negotiated transaction

against total acquisition is:

＊Acquisition Price Basis 75.2%

External Growth (Deal Sources)

Steady acquisition of good performing properties by utilization of

the extensive pipelinesof the sponsors

Acquisition from sponsors, etc. / through sponsors’ introduction

Negotiated Transactions from sponsors, etc.

＊41 deals

＊¥422,849 million

Akasaka Park Building

Shiodome Building（The share acquired in December 2008）

(*1)

(*2)

Nagoya Hirokoji Place

Sponsors’ introductions（Negotiated Transactions）

＊13 deals

＊¥94,687 million

Negotiated Transactionsfrom others

＊32 deals


Harumi Front

Acquisition through negotiated transactions

40

(*2)

The acquisition from sponsors / through

sponsors’ introduction against total acquisition is:

70.8%＊Acquisition Price Basis

MM Park Building

Kitanomaru Square

Umeda Square BuildingAER

Acquisition / Introduction by parties other than sponsors

Sponsors’ introduction（Tender Transactions）

＊2 deals


Tender Transactions from sponsors, etc.

＊3 deals

＊¥50,800 million

Acquisition through tender transactions from others

＊8 deals

＊¥72,678 million

41

(*1) Acquisition from sponsors, etc. includes those from 1) the sponsor (two entities which are current sponsors and past sponsors, TokioMarine & Nichido Fire Insurance Co., Ltd. and The Dai-ichi Life Insurance Company, Limited), and 2) SPC in which the sponsor has a 50% or larger equity investment (including acquisition of a trust property in the trust beneficiary right in trust of real estate owned by SPC).

(*2) The additional shares of Saitama Urawa Building and Kanazawa Park Building and the share of Otemachi Financial City North Tower were acquired from the sponsors and unrelated companies, respectively, on the same date. Therefore, these deals were counted as two transactions, one sponsor-related and one sponsor-unrelated transaction.

Acquisition through tender transactions

(As of September 30, 2016)

Negotiated Transactions 86 (86.9%) 727 (75.2%)Acquisition from sponsors, etc. 41 (41.4%) 422 (43.7%)Acquisition through sponsors' introduction 13 (13.1%) 94 (9.8%)Others 32 (32.3%) 210 (21.7%)

Tender Transactions 13 (13.1%) 239 (24.8%)Acquisition from sponsors, etc. 3 (3.0%) 50 (5.3%)Acquisition through sponsors' introduction 2 (2.0%) 116 (12.0%)Others 8 (8.1%) 72 (7.5%)

Total 99 (100.0%) 967 (100.0%)

Type of transaction Number of deals Amount(In billions of yen)

70% or over:

in the Tokyo metropolitan area

30% or below:

in Osaka, Nagoya,

and other major local cities

External Growth (Acquisition Criteria)

Geographic Diversification

Adaptation to new earthquake-resistance standards

(Earthquake Resistant Design Standard under Building

Standard Law enforced in 1981) or

equivalent structure/strength

Structure

Total floor area: 3,000㎡ or over

Size of Property

JRE aims to maintain and improve the quality of the portfolio by acquiring only excellent properties that satisfy the above criteria

70% or over is in the Tokyo

metropolitan area

30% or belowis in other major

local cities

Adaptation to new earthquake-resistance standards

Acquire properties with total floor area of 3,000㎡ or over

40 large-sized buildings have total floor area of 10,000㎡ or over

42

4. Financial Strategies

Summary of Debts at the End of Sep. ’16 Period

Weighted average interest rate 0.75 %

44

Breakdown of short-term and long-term debt

Outstanding balance of loans

by financial institutions

Long-term fixed interest-bearing debt ratio

gAverage maturity of total interest-bearing debt

Total interest-bearing debt

As of the end of September 2016

87.2 %

3.54 years

¥356,350 million

In millions of yen


Current portion of long-term loans

42,850 (12.0%)

Short-term loans 45,700Current portion of long-term loans 42,850Long-term loans (Fixed interest) 247,800

Total amount of loans 336,350Investment corporation bonds 20,000Total amount of Investment corporation bonds 20,000

（In millions of yen）Mitsubishi UFJ Trust and Banking Corporation 57,000

Mizuho Bank, Ltd. 47,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd. 47,000

Sumitomo Mitsui Trust Bank, Limited 36,000

Development Bank of Japan Inc. 16,350

Shinkin Central Bank 14,000

The Bank of Fukuoka, Ltd. 10,000

The Norinchukin Bank 10,000

Shinsei Bank, Limited 10,000

The Iyo Bank, Ltd. 6,500

The Chugoku Bank, Limited 6,000

Resona Bank, Limited 6,000

Taiyo Life Insurance Company 5,500

The Dai-ichi Life Insurance Company, Limited 5,000

Sumitomo Mitsui Banking Corporation 5,000

The Hachijuni Bank, Ltd. 4,000

The Hiroshima Bank, Ltd. 3,000

Mizuho Trust & Banking Co., Ltd. 3,000

The Yamaguchi Bank, Ltd. 3,000

The Gunma Bank, Ltd. 2,000

Nippon Life Insurance Company 2,000

The Nishi-Nippon City Bank, Ltd. 2,000

The Yamanashi Chuo Bank, Ltd. 2,000

The Daishi Bank, Ltd. 1,500

The Ashikaga Bank, Ltd. 1,000

The Joyo Bank, Ltd. 1,000

The 77 Bank, Ltd. 1,000

The first General syndication loan 13,000

The second General syndication loan 10,000

The third General syndication loan 6,500

Averageinterest

rate

AverageMaturity(year)

Short-term loans 0.07% 0.41Current portion of long-term loans,Investment corporation bonds 1.10% 0.57

Long-term loans,Investment corporation bonds 0.81% 4.55


(In millions of yen)（As of the end of September 2016）

LTV / Debt Capacity / Diversification of Repayment Dates

（As of the end of September 2016）

LTV (Interest-bearing Debt / Total Assets)

Diversification of Repayment Dates

Debt Capacity

* LTV(%) = Interest-bearing debt / Total assets x 100

* Long-term, fixed interest-bearing debt ratio = (Long-term, fixed-interest loans + Investment corporation bonds [including current portion of Long-term, fixed-interest loans and Investment corporation bonds]) / Total interest-bearing debt

Ensure financial soundness by constantly maintaining conservative LTV

45


Total assets Interest-bearing debt ＬＴＶUp to LTV45% 75,063Up to LTV40% (4,827)

Debt Capacity

883,633 356,350 40.3%

10/16-03/17 04/17-03/18 04/18-03/19 04/19-03/20 04/20-03/21 04/21-03/22 04/22-03/23 04/23-03/24 04/24-03/25 04/25-03/26

(within 6 months) (within 1.5 years) (within 2.5 years) (within 3.5 years) (within 4.5 years) (within 5.5 years) (within 6.5 years) (within 7.5 years) (within 8.5 years) (within 9 y ears)

Short-term Loans 29,700 16,000 - - - - - - - - 45,700Long-term Loans 14,350 46,500 27,500 49,000 39,000 36,500 41,500 13,000 14,800 8,500 290,650

Investment Corporation Bonds - - 10,000 - - - - - - 10,000 20,000Total 44,050 62,500 37,500 49,000 39,000 36,500 41,500 13,000 14,800 18,500 356,350

Total

46

Overview of the Interest-bearing Debt at the End of Sep. ’16 Period

Overview of the Interest-bearing Debt

Drawdown date EOB InterestThe 77 Bank, Ltd. 01/07/16 1,000 0.0718 01/10/17 1 yearThe Bank of Tokyo-Mitsubishi UFJ, Ltd. 03/02/16 1,500 0.0718 03/02/17 1 yearMizuho Bank, Ltd. 03/25/16 5,500 0.0718 03/27/17 1 yearSumitomo Mitsui Trust Bank, Limited 03/31/16 1,700 0.07 03/31/17 1 yearMizuho Bank, Ltd. 04/01/16 5,500 0.0718 04/03/17 1 yearThe Bank of Tokyo-Mitsubishi UFJ, Ltd. 04/01/16 3,500 0.0718 04/03/17 1 yearMitsubishi UFJ Trust and Banking Corporation 04/04/16 3,000 0.0718 04/04/17 1 yearMitsubishi UFJ Trust and Banking Corporation 06/23/16 5,000 0.0718 12/26/16 0.5 yearsMizuho Bank, Ltd. 06/23/16 5,000 0.0718 12/26/16 0.5 yearsThe Bank of Tokyo-Mitsubishi UFJ, Ltd. 06/23/16 5,000 0.0718 12/26/16 0.5 yearsSumitomo Mitsui Trust Bank, Limited 06/23/16 5,000 0.0718 12/26/16 0.5 yearsShinsei Bank, Limited 09/01/16 2,000 0.0718 09/01/17 1 yearShinkin Central Bank 09/01/16 1,000 0.0718 09/01/17 1 yearResona Bank, Limited 09/01/16 1,000 0.0718 09/01/17 1 year

0.07(Average)

Repayment date (period)

Total 45,700 (Average maturity)

0.41 years

Lender

Short-term Loans

Drawdown date EOB InterestThe Dai-ichi Life Insurance Company, Limited 03/30/09 5,000 1.54375 03/30/17 8 yearsDevelopment Bank of Japan Inc. (*1) 03/24/10 1,350 1.665 03/24/17 7 yearsMizuho Bank, Ltd. 12/21/10 5,000 1.30625 12/21/16 6 yearsResona Bank, Limited 03/01/11 2,000 1.255 03/01/17 6 yearsMitsubishi UFJ Trust and Banking Corporation 04/04/11 5,000 1.205 04/04/17 6 yearsMitsubishi UFJ Trust and Banking Corporation 06/01/11 12,000 1.12625 06/01/17 6 yearsThe Bank of Fukuoka, Ltd. 08/31/11 2,000 0.9025 08/31/17 6 yearsShinkin Central Bank 11/15/11 1,000 0.7525 11/15/16 5 yearsThe Bank of Fukuoka, Ltd. 06/15/12 2,500 0.66 06/15/17 5 yearsShinsei Bank, Limited 06/15/12 2,500 0.66 06/15/17 5 yearsThe Iyo Bank, Ltd. 06/15/12 2,500 0.66 06/15/17 5 yearsThe Hachijuni Bank, Ltd. 06/15/12 1,000 0.66 06/15/17 5 yearsThe Bank of Fukuoka, Ltd. 08/31/12 1,000 0.57125 08/31/17 5 years

1.10(Average)

Current Portion ofLong-term Loans

Repayment date (period)Lender

42,850 0.57 years (Average maturity)

Total

Drawdown date EOB InterestSumitomo Mitsui Trust Bank, Limited 01/17/11 3,000 1.43375 01/17/18 7 yearsNippon Life Insurance Company 03/01/11 2,000 1.465 03/01/18 7 yearsThe Bank of Tokyo-Mitsubishi UFJ, Ltd. 03/24/11 2,000 1.3975 03/26/18 7 yearsTaiyo Life Insurance Company 03/30/11 2,000 1.39625 03/30/18 7 yearsMitsubishi UFJ Trust and Banking Corporation 06/01/11 10,000 1.31125 06/01/18 7 yearsShinsei Bank, Limited 08/31/11 3,000 1.0475 08/31/18 7 yearsSumitomo Mitsui Trust Bank, Limited 09/26/11 5,500 1.16 09/26/19 8 yearsMizuho Bank, Ltd. 11/01/11 6,000 1.2075 11/01/19 8 yearsSumitomo Mitsui Trust Bank, Limited 11/15/11 3,000 0.98375 11/15/18 7 yearsSumitomo Mitsui Banking Corporation 11/15/11 3,000 0.98375 11/15/18 7 yearsMitsubishi UFJ Trust and Banking Corporation 11/15/11 3,000 1.13875 11/15/19 8 yearsMizuho Bank, Ltd. 11/15/11 3,000 1.13875 11/15/19 8 yearsThe Bank of Tokyo-Mitsubishi UFJ, Ltd. 11/15/11 3,000 1.13875 11/15/19 8 yearsMitsubishi UFJ Trust and Banking Corporation 06/15/12 4,000 0.9525 06/15/20 8 yearsSumitomo Mitsui Trust Bank, Limited 06/15/12 4,000 0.9525 06/15/20 8 yearsMizuho Bank, Ltd. 06/15/12 4,000 1.07375 06/15/21 9 yearsThe Bank of Tokyo-Mitsubishi UFJ, Ltd. 06/15/12 4,000 1.1975 06/15/22 10 yearsMitsubishi UFJ Trust and Banking Corporation 06/15/12 2,500 1.2725 06/15/22 10 yearsShinsei Bank, Limited 06/15/12 2,500 1.2725 06/15/22 10 yearsThe Yamaguchi Bank, Ltd. 10/29/12 2,000 0.8 10/29/20 8 yearsThe Hachijuni Bank, Ltd. 12/20/12 1,000 0.45625 12/20/17 5 yearsMitsubishi UFJ Trust and Banking Corporation 12/21/12 5,000 0.80125 12/21/20 8 yearsThe Bank of Tokyo-Mitsubishi UFJ, Ltd. 12/21/12 5,000 0.80125 12/21/20 8 yearsThe Ashikaga Bank, Ltd. 01/07/13 1,000 0.49125 01/09/18 5 yearsThe Joyo Bank, Ltd. 01/07/13 1,000 0.49125 01/09/18 5 yearsShinkin Central Bank 01/07/13 2,000 0.71375 01/07/20 7 yearsSumitomo Mitsui Banking Corporation 01/07/13 2,000 0.98 01/07/22 9 yearsDevelopment Bank of Japan Inc. 01/07/13 3,000 1.115 01/06/23 10 years

Lender

Long-term Loans


Maximum Amount: ¥50 billionExpiry of the contract: September 19, 2019Participating financial institutions:

Mizuho Bank, Ltd. The Bank of Tokyo-Mitsubishi UFJ, Ltd.Sumitomo Mitsui Trust Bank, LimitedMitsubishi UFJ Trust and Banking Corporation

There is no outstanding balance as of the end of Sep. ’16 Period

(*1) The 2,000-million-yen loan dated March 24, 2010 (principal outstanding: 1,350million yen as of the end of September 2016) will be repaid according to therepayment schedule under which 50 million yen will be repaid every six months and1,350 million yen on the final repayment date.

(*2) The loans were originally floating rate basis, which were swapped into fixedrates to hedge against interest rate fluctuations. Hence the fixed rates after theswap transactions are shown above.

(*3) The loans were originally in US dollar, floating rate basis and the currency andinterest rate swap transaction was executed in order to hedge against a risk ofexchange-rate fluctuations and interest fluctuations. Hence the above rates are thefixed rates after the currency and interest rate swap transaction.

47

(EOB：In millions of yen, Interest：%)

Outline of Commitment line agreement

*The loans drawn down and the bonds issued in Sep. ’16 Period are shown in blue

Drawdown date EOB InterestThe Bank of Tokyo-Mitsubishi UFJ, Ltd. 01/15/13 5,500 0.71 01/15/20 7 yearsShinkin Central Bank 01/15/13 5,000 0.71 01/15/20 7 yearsThe Bank of Tokyo-Mitsubishi UFJ, Ltd. 01/15/13 5,500 0.83625 01/15/21 8 yearsMizuho Bank, Ltd. 01/15/13 5,000 0.96625 01/17/22 9 yearsResona Bank, Limited 03/25/13 3,000 0.45 03/26/18 5 yearsThe Chugoku Bank, Limited 03/25/13 2,000 0.45 03/26/18 5 yearsThe Hachijuni Bank, Ltd. 03/25/13 1,000 0.45 03/26/18 5 yearsThe Yamaguchi Bank, Ltd. 03/25/13 1,000 0.945 03/24/23 10 yearsShinkin Central Bank 04/24/13 5,000 0.52775 04/24/18 5 yearsThe Bank of Tokyo-Mitsubishi UFJ, Ltd. 04/24/13 5,000 0.775 04/26/21 8 yearsMizuho Bank, Ltd. 04/24/13 3,000 0.87375 04/25/22 9 yearsMitsubishi UFJ Trust and Banking Corporation (*2) 01/31/14 4,000 0.64225 01/29/21 7 yearsThe Bank of Fukuoka, Ltd. (*2) 01/31/14 2,500 0.63849 01/29/21 7 yearsSumitomo Mitsui Trust Bank, Limited (*2) 01/31/14 2,000 0.62575 01/29/21 7 yearsThe Norinchukin Bank (*2) 01/31/14 3,500 0.757 01/31/22 8 yearsDevelopment Bank of Japan Inc. 01/31/14 5,000 0.9325 01/31/23 9 yearsThe Gunma Bank, Ltd. (*2) 03/24/14 1,000 0.4105 03/25/19 5 yearsThe Iyo Bank, Ltd. (*2) 03/24/14 2,000 0.6035 03/24/21 7 yearsThe Nishi-Nippon City Bank, Ltd. (*2) 06/17/14 2,000 0.621 12/17/21 7.5 yearsThe Norinchukin Bank (*2) 06/17/14 3,000 0.6785 06/17/22 8 yearsThe Hiroshima Bank, Ltd. (*2) 10/01/14 3,000 0.31575 10/01/19 5 yearsThe Iyo Bank, Ltd. (*2) 10/01/14 1,000 0.46525 10/01/21 7 yearsThe Chugoku Bank, Limited (*2) 10/01/14 1,000 0.4725 10/01/21 7 yearsTaiyo Life Insurance Company 10/01/14 2,000 0.7825 10/01/24 10 yearsThe first General syndication loan (*2) 11/14/14 13,000 0.463 11/15/21 7 yearsThe Gunma Bank, Ltd. (*2) 11/17/14 1,000 0.316 11/18/19 5 yearsThe Yamanashi Chuo Bank, Ltd. (*2) 12/15/14 2,000 0.266 12/16/19 5 yearsThe second General syndication loan (*3) 12/19/14 10,000 0.42375 12/19/23 9 yearsMizuho Trust & Banking Co., Ltd. (*2) 03/02/15 3,000 0.5585 03/03/25 10 yearsThe Bank of Fukuoka, Ltd. 03/24/15 2,000 0.5125 03/24/23 8 yearsThe Norinchukin Bank (*2) 03/25/15 3,500 0.46825 03/27/23 8 yearsSumitomo Mitsui Trust Bank, Limited 05/29/15 5,000 0.2075 05/29/19 4 yearsTaiyo Life Insurance Company 05/29/15 1,500 0.7375 05/29/25 10 yearsSumitomo Mitsui Trust Bank, Limited 06/15/15 3,000 0.3425 06/15/20 5 yearsThe Chugoku Bank, Limited (*2) 06/15/15 3,000 0.61175 06/15/23 8 yearsThe third General syndication loan (*2) 08/10/15 6,500 0.3925 08/10/22 7 yearsMizuho Bank, Ltd. 09/01/15 2,500 0.17 03/01/19 3.5 yearsThe Bank of Tokyo-Mitsubishi UFJ, Ltd. 09/01/15 5,000 0.2 09/02/19 4 yearsThe Bank of Tokyo-Mitsubishi UFJ, Ltd. 09/01/15 2,000 0.47125 09/01/22 7 yearsMitsubishi UFJ Trust and Banking Corporation 09/01/15 3,500 0.63 09/02/24 9 yearsDevelopment Bank of Japan Inc. 09/01/15 7,000 0.7175 09/01/25 10 yearsSumitomo Mitsui Trust Bank, Limited (*2) 09/02/15 3,800 0.536 09/02/24 9 yearsMizuho Bank, Ltd. 10/01/15 2,500 0.5575 10/01/24 9 yearsThe Daishi Bank, Ltd. (*2) 01/07/16 1,500 0.2802 01/10/23 7 yearsThe Iyo Bank, Ltd. (*2) 01/15/16 1,000 0.265 01/16/23 7 yearsThe Hachijuni Bank, Ltd. (*2) 01/15/16 1,000 0.265 01/16/23 7 years

0.76(Average)

4.47 years

Lender

Long-term Loans


Total 247,800 (Average maturity)

Issue Date EOB InterestFourth unsecured Investment Corporation Bond 09/29/05 10,000 2.56 09/29/25 20 yearsNinth unsecured Investment Corporation Bond 08/30/13 10,000 0.497 08/30/18 5 years

1.53(Average)

InvestmentCorporation Bonds

Bond Name Maturity Date (period)

Total 20,000 5.45 years (Average maturity)

Unitholder Data

Unitholder Composition

Top 10 Unitholders

48

Sep. ’16 Period Mar. ’16 Period

Number of Unitholders by Sector

As JRE implemented a 2-for-1 split of each investment unit as of January 1, 2014, units outstanding refers to the amount as a post-split basis.

1 Japan Trustee Services Bank, Ltd. (Shintaku Acc.) 232,035 17.72%

2 The Master Tust Bank of Japan, Ltd. (Shintaku Acc.) 125,817 9.61%

3 Trust & Custody Services Bank, Ltd. (Toshin Acc.) 100,794 7.70%

4 The Nomura Trust and Banking Co., Ltd. (Toshin Acc.) 51,227 3.91%

5 STATE STREET BANK WEST CLIENT-TREATY 505234 29,807 2.28%

6 STATE STREET BANK-WEST PENSION FUND CLIENTS-EXEMPT 505233 23,178 1.77%

7 STATE STREET BANK AND TRUST COMPANY 505223 22,674 1.73%

8 NOMURA BANK (LUXEMBOURG) S．A． 18,931 1.45%

9 The Chugoku Bank Ltd. 17,970 1.37%

10 Mitsubishi Estate Co., Ltd. 17,120 1.31%

Mitsui & Co., Ltd. 3,200 0.24%

Company Units % of Total UnitsOutstanding

Unitholders % Unitholders %Individuals 14,059 92.5% 14,631 92.9%

Financial institutions 244 1.6% 228 1.4%

Other corporations 413 2.7% 439 2.8%

Foreign corporations / individuals 490 3.2% 457 2.9%

Total 15,206 100.0% 15,755 100.0%

End of Sep. '16 Period End of Mar. '16 Period

1 Japan Trustee Services Bank, Ltd. (Shintaku Acc.) 237,365 18.13%

2 The Master Trust Bank of Japan, Ltd. (Shintaku Acc.) 129,151 9.86%

3 Trust & Custody Services Bank, Ltd. (Toshin Acc.) 97,820 7.47%

4 The Nomura Trust and Banking Co., Ltd. (Toshin Acc.) 52,705 4.03%

5 STATE STREET BANK WEST CLIENT-TREATY 505234 26,487 2.02%

6 STATE STREET BANK-WEST PENSION FUND CLIENTS-EXEMPT 505233 22,544 1.72%

7 STATE STREET BANK AND TRUST COMPANY 505223 21,279 1.63%

8 The Chugoku Bank Ltd. 17,970 1.37%

9 NOMURA BANK (LUXEMBOURG) S．A． 17,226 1.32%

10 Mitsubishi Estate Co., Ltd. 17,120 1.31%

Mitsui & Co., Ltd. 3,200 0.24%

Company Units % of Total UnitsOutstanding

Number of units outstanding1,251,530

1,309,310

1,188,280

1,098,080

（Units）

）

）Foreigncorporationsandindividuals

Othercorporations

Financialinstitutions

Individuals

(Units)

Financial Institutions

Proportion of Total Units Outstanding by Financial Institution Segment

（Units）

<Number of investment trust units>

Distribution of Total Units Outstanding by Financial Institution Segment


Number of units outstanding 1,098,080 1,098,080 1,188,280 1,188,280 1,188,280 1,251,530 1,251,530 1,309,310 1,309,310 1,309,310Trust bank 357,544 364,546 406,496 438,294 480,276 500,789 488,247 544,560 536,219 542,333Investment trust 285,850 278,266 316,986 336,156 374,564 389,165 370,639 425,120 415,349 414,234% against total units outstanding 26.0% 25.3% 26.7% 28.3% 31.5% 31.1% 29.6% 32.5% 31.7% 31.6%% against units ow ned by trust bank 79.9% 76.3% 78.0% 76.7% 78.0% 77.7% 75.9% 78.1% 77.5% 76.4%

49

5. Portfolio Information

Achieved steady growth since IPO in 2001 and established a portfolio worth over ¥920 billion (total acquisition price)

Historical Asset Size and Occupancy Rate

52

Trend of Asset Size and Occupancy Rate

[20] [24]

[27] [30][20] [36] [39] [52] [49] [50] [50] [53] [54] [55] [55] [55] [55] [57] [56] [57] [58] [60] [62] [64] [64] [68] [70][50][46][32][24] [68] [68]

*The original acquisition price pertaining to the part of Jingumae Media Square Building site, which was transferred on October 30, 2009 has not been deducted from the total acquisition price in the above graph.

*Occupancy rate of Nippon Brunswick (land with leasehold interest) is not included in the above graph after Sep. ’13 Period, as its building portion was transferred on August 23, 2016.

（In billions of yen）

53

At IPO（The end of September 2001）

20 propertiesAs of the end of Sep. ’16 Period

68 properties

Geographic Diversification and Trend in Average Building Age

After 15 years

（years）

Trend in Average Building Age

Geographical Diversification

Average Building Age at IPO : 17.9 years Average Building Age : 17.5 years

*Weighted average based on acquisition prices*Nippon Brunswick (land with leasehold interest) is not included.

32.9 years

17.5 years

* Acquisition price basis * Tokyo metropolitan area represents Tokyo, Saitama, Chiba, and Kanagawa prefecture.

Asset size : ¥923,623 millionAsset size at IPO : ¥92,845 million

Portfolio, advanced with strong competitiveness and high liquidity, focusing mainly in 3 central wards of Tokyo / Tokyo 23 wards.

Even after 15 years since IPO, overall building age is newer in the current portfolio


Gross number of tenants

Tenant Diversification and Changes in the Number of Tenants

Tenant Diversification

Changes in the Number of Tenants

54

* The number of tenants is disclosed based on the gross number of tenants by building.

67 properties as of September 30, 2016 Based on the leased space

・・・

Major Tenants and Ratios

Percentage of Major Tenants

(Note) Not disclosed due to tenant's request



55

67 properties as of September 30, 2016 Based on the leased space

Major Tenants / Top 10 67 properties as of September 30, 2016 Based on the leased space

Rank Tenant PropertyLeased

Space(㎡)

% of TotalLeasedSpace

Rank LeasedSpace(㎡)

1 The Bank of Tokyo-Mitsubishi UFJ, Ltd.Harumi Front(also includes 3 other buildings) 33,912 4.2% 1 33,910 2

2 (Note)Kitanomaru Square(also includes 2 other buildings) 22,305 2.8% 2 22,305 0

3 (Note)Osaki Front Tow er(also includes 2 other buildings) 21,985 2.7% 3 21,985 0

4 NTT Communications Corporation Shiodome Building 13,289 1.6% 4 13,289 0

5 HAKUHODO DY HOLDINGS INCORPORATEDAkasaka Park Building(also includes 1 other building) 12,831 1.6% 5 12,831 0

6 JGC Corporation MM Park Building(also includes 1 other building) 10,649 1.3% 7 10,649 0

7 Mitsubishi UFJ Trust and Banking CorporationMitsubishi UFJ Trustand Banking Building 10,598 1.3% 8 10,598 0

8 Minato Mirai 21 District Heating and Cooling Co., Ltd Queen's Tow er A 9,536 1.2% 9 9,536 0

9 Seven & i Holdings Co., Ltd. Nibancho Garden 9,316 1.2% 10 9,316 0

10 Space Design, Inc.Burex Kojimachi Building(also includes 1 other building) 8,774 1.1% 11 8,774 0

11 Company Ａ 8,581 1.1% 6 11,127 (2,545)

12 Company Ｂ 8,567 1.1% 12 8,567 0

13 Company Ｃ 7,271 0.9% 13 7,271 0

14 Company Ｄ 6,564 0.8% 14 6,564 0

15 Company Ｅ 6,493 0.8% 15 6,493 0

Sep. '16 Period Mar. '16 Period LeasedSpace

Change(㎡)

（㎡）

（㎡）

Newly Leased & Returned Space of Each Property

56

Total of newly leased space : ＋18,450 ㎡

Total of returned space : ▲15,755 ㎡

Total of newly leased space : ＋21,531 ㎡

Total of returned space : ▲17,901 ㎡

(Includes the properties transferred)

Tenant Turnover in Sep. ’16 Period Tenant Turnover in Mar. ’16 Period

Portfolio List at the End of Sep. ’16 Period (Occupancy Rate, etc.)

57

• The above-mentioned occupancy rates do not include the residential portions. Leasable space and occupancy rates of the residential portions as of the end of Sep. ’16 Period are 11,694 m2 95.0% of Kitanomaru Square, 10,780 m2 92.8% of Akasaka Park Building, 1,686 m2 100.0% of NibanchoGarden, 954 m2 74.0% of Nishiki Park Building.

• The Number of tenants is disclosed based on the gross number of tenants by building.

End ofSep. '16Period

Variancefrom

End ofMar. '16Period


Variancefrom



Variancefrom



Variancefrom


Tokyo 23 Wards Chiyoda Genki Medical Plaza 4,791 4,791 0 100.0% 1 4,791 4,791 0 100.0%Tokyo 23 Wards Chiyoda Kitanomaru Square 25,678 25,678 0 100.0% 5 25,678 25,678 0 100.0%Tokyo 23 Wards Chiyoda MD Kanda 6,269 6,269 0 100.0% 9 6,269 6,269 0 100.0%Tokyo 23 Wards Chiyoda Kandabashi Park 3,687 3,687 0 100.0% 10 3,687 3,687 0 100.0%Tokyo 23 Wards Chiyoda Otemachi FCN 5,121 5,121 0 100.0% 2 5,121 5,121 0 100.0%Tokyo 23 Wards Chiyoda Nibancho Garden 9,316 9,316 0 100.0% 1 9,316 9,316 0 100.0%Tokyo 23 Wards Chiyoda Mitsubishi UFJ Trust 11,904 11,904 0 100.0% 10 11,904 11,904 0 100.0%Tokyo 23 Wards Chiyoda Burex Kojimachi 4,495 4,495 0 100.0% 1 4,495 4,495 0 100.0%Tokyo 23 Wards Chiyoda Sanno Grand 20,665 19,918 747 408 96.4% (2.0)% 38 20,665 20,462 203 (543) 99.0% 2.6%Tokyo 23 Wards Chiyoda Yurakucho Denki 4,697 4,697 0 100.0% 13 4,697 4,697 0 100.0%Tokyo 23 Wards Chuo Kodenmacho 3,897 3,897 0 100.0% 11 3,897 3,897 0 100.0%Tokyo 23 Wards Chuo Kyodo (Kayabacho 2Chome) 4,464 4,265 199 199 95.5% (4.5)% 9 4,464 4,464 0 (199) 100.0% 4.5%Tokyo 23 Wards Chuo Burex Kyobashi 4,279 4,279 0 100.0% 1 4,279 4,279 0 100.0%Tokyo 23 Wards Chuo Ginza 1Chome 4,513 4,513 0 100.0% 8 4,513 4,513 0 100.0%Tokyo 23 Wards Chuo Ginza Sanwa 4,326 4,201 125 125 97.1% (2.9)% 9 4,326 4,249 76 (48) 98.2% 1.1%Tokyo 23 Wards Chuo Ryoshin Ginza EM 4,255 4,255 0 100.0% 12 4,255 4,255 0 100.0%Tokyo 23 Wards Chuo Harumi Front 33,369 33,369 0 100.0% 8 33,369 33,369 0 100.0%Tokyo 23 Wards Chuo Harumi Center 20,812 20,812 0 100.0% 9 20,812 16,369 4,442 4,442 78.7% (21.3)%Tokyo 23 Wards Minato Akasaka Park 45,013 45,013 0 100.0% 29 45,013 45,013 0 100.0%Tokyo 23 Wards Minato Aoyama Crystal 4,898 4,898 0 100.0% 7 4,898 4,898 0 100.0%Tokyo 23 Wards Minato Clover Shiba-koen 2,550 2,227 323 323 87.3% (12.7)% 7 2,550 2,550 0 (323) 100.0% 12.7%Tokyo 23 Wards Minato Shiodome 36,174 35,867 307 (2,142) 99.1% 5.9% 35 36,174 36,135 39 (267) 99.9% 0.8%Tokyo 23 Wards Minato Shiba 2Chome Daimon 9,606 9,606 0 100.0% 25 9,606 9,530 76 76 99.2% (0.8)%Tokyo 23 Wards Minato Cosmo Kanasugibashi 4,062 3,870 192 192 95.3% (4.7)% 7 4,062 3,870 192 95.3%Tokyo 23 Wards Shinjuku Shinjuku Eastside 16,365 16,365 0 (1) 100.0% 43 16,365 16,229 135 135 99.2% (0.8)%Tokyo 23 Wards Shinjuku Shinwa 5,997 5,997 0 100.0% 13 5,997 5,997 0 100.0%Tokyo 23 Wards Shinjuku Tokyo Opera City 35,099 34,469 629 (974) 98.2% 2.8% 101 35,025 34,523 502 (127) 98.6% 0.4%Tokyo 23 Wards Taito TIX UENO 15,020 13,930 1,090 1,090 92.7% (7.3)% 16 15,020 15,020 0 (1,090) 100.0% 7.3%Tokyo 23 Wards Shinagawa Higashi-Gotanda 1Chome 5,205 5,205 0 100.0% 4 5,205 5,205 0 100.0%Tokyo 23 Wards Shinagawa Osaki Front Tower 16,856 16,856 0 100.0% 1 16,856 16,856 0 100.0%Tokyo 23 Wards Ota Omori-Eki Higashiguchi 7,756 7,756 0 100.0% 23 7,706 7,418 288 288 96.3% (3.7)%Tokyo 23 Wards Shibuya Yoyogi 1Chome 7,745 7,745 0 100.0% 9 7,745 7,745 0 100.0%Tokyo 23 Wards Shibuya da Vinci Harajuku 3,147 3,147 0 100.0% 4 3,147 3,147 0 100.0%Tokyo 23 Wards Shibuya Jingumae MS 5,558 4,698 859 (1,376) 84.5% 24.7% 5 5,558 5,558 0 (859) 100.0% 15.5%Tokyo 23 Wards Shibuya Shibuya Cross Tower 29,762 29,288 474 424 98.4% (1.4)% 55 29,797 29,797 0 (474) 100.0% 1.6%Tokyo 23 Wards Shibuya Ebisu Neonato 8,700 8,679 20 20 99.8% (0.2)% 6 8,700 8,679 20 99.8%Tokyo 23 Wards Nakano Harmony Tower 14,340 14,340 0 100.0% 20 14,340 13,956 383 383 97.3% (2.7)%Tokyo 23 Wards Toshima Otsuka Higashi-Ikebukuro 7,224 7,224 0 100.0% 7 7,224 7,224 0 100.0%Tokyo 23 Wards Toshima Ikebukuro 2Chome 2,186 2,186 0 100.0% 9 2,186 2,186 0 100.0%Tokyo 23 Wards Toshima Ikebukuro YS 5,932 5,932 0 100.0% 10 5,932 5,932 0 100.0%Other Areas Hachioji Hachioji First 10,068 10,068 0 100.0% 51 10,068 9,952 115 115 98.8% (1.2)%Other Areas Saitama Saitama Urawa 4,510 4,510 0 100.0% 18 4,510 4,510 0 100.0%Other Areas Yokohama MM Park 38,426 37,953 473 (103) 98.8% 0.3% 30 38,426 38,426 0 (473) 100.0% 1.2%Other Areas Yokohama Queen's 26,669 25,922 746 200 97.2% (0.8)% 49 26,669 25,762 906 160 96.6% (0.6)%Other Areas Kawasaki Kawasaki Isago 6,831 6,831 0 100.0% 13 6,831 6,831 0 100.0%Other Areas Kawasaki Musashi Kosugi STM 5,378 5,378 0 100.0% 26 5,378 5,378 0 100.0%Other Areas Sapporo 8･3 Square Kita 12,265 12,265 0 100.0% 9 12,265 12,265 0 100.0%Other Areas Sendai Jozenji Park 2,518 2,418 100 96.0% 16 2,518 2,418 100 96.0%Other Areas Sendai Higashi Nibancho 20,526 20,254 272 (705) 98.7% 3.5% 21 20,526 20,118 408 136 98.0% (0.7)%Other Areas Sendai Sendai Honma 6,234 6,234 0 (70) 100.0% 1.1% 24 6,234 5,894 339 339 94.6% (5.4)%Other Areas Sendai AER 23,612 23,182 430 (44) 98.2% 0.2% 61 23,612 23,488 123 (306) 99.5% 1.3%Other Areas Kanazawa Kanazawa Park 20,942 20,803 139 (375) 99.3% 1.8% 79 20,853 20,470 383 243 98.2% (1.1)%Other Areas Kanazawa Kanazawa Kamitsutusmicho - - - - - - - 7,206 7,044 162 - 97.7% -Other Areas Nagoya Nishiki Park 10,338 9,957 380 326 96.3% (3.1)% 59 10,338 9,880 457 77 95.6% (0.7)%Other Areas Nagoya Hirokoji Place 13,200 13,200 0 (210) 100.0% 1.6% 27 13,200 13,200 0 100.0%Other Areas Nagoya Nagoya Hirokoji 21,610 19,814 1,796 929 91.7% (4.3)% 33 21,415 20,175 1,239 (556) 94.2% 2.5%Other Areas Nagoya Nagoya Misono 3,448 3,448 0 100.0% 16 3,448 3,448 0 100.0%Other Areas Kyoto Shijo Karasuma 6,634 6,634 0 (333) 100.0% 5.0% 11 6,634 6,634 0 100.0%Other Areas Osaka Umeda Square 10,370 10,370 0 100.0% 42 10,370 10,370 0 100.0%Other Areas Osaka Shin-Fujita 28,414 27,540 874 (728) 96.9% 2.5% 49 28,414 27,006 1,408 534 95.0% (1.9)%Other Areas Osaka Sakaisujihonmachi 11,520 11,050 469 299 95.9% (2.6)% 21 11,520 11,520 0 (469) 100.0% 4.1%Other Areas Osaka Midosuji Daiwa 20,450 20,450 0 (65) 100.0% 0.3% 41 20,450 20,450 0 100.0%Other Areas Amagasaki Amagasaki Front 15,500 15,500 0 (149) 100.0% 1.0% 31 15,500 15,500 0 100.0%Other Areas Okayama Lit City 9,965 9,965 0 100.0% 39 9,965 9,965 0 100.0%Other Areas Hiroshima NHK Hiroshima 9,860 9,860 0 100.0% 12 9,860 9,860 0 100.0%Other Areas Fukuoka Tosei Tenjin 3,995 3,693 302 151 92.4% (3.8)% 22 3,995 3,607 387 85 90.3% (2.1)%Other Areas Fukuoka Tenjin Crystal 5,964 5,964 0 (53) 100.0% 0.9% 30 5,964 5,964 0 100.0%Other Areas Fukuoka Hinode Tenjin 5,903 5,903 0 100.0% 3 5,903 5,828 75 75 98.7% (1.3)%Tokyo 23 Wards 465,753 460,783 4,970 (1,712) 98.9% 0.3% 593 465,665 459,303 6,361 1,390 98.6% (0.3)%Other Areas 355,164 349,179 5,985 (932) 98.3% 0.3% 833 362,086 355,977 6,109 124 98.3%Portfolio 820,917 809,962 10,955 (2,644) 98.7% 0.4% 1,426 827,751 815,281 12,470 1,515 98.5% (0.2)%

LeasableSpace(m2)

LeasedSpace(m2)

Vacant Area (m2) Occupancy RateEnd of Sep. '16 Period End of Mar. '17 Period (Forecast)

Area NameLeasable

Space(m2)

LeasedSpace(m2)

Vacant Area (m2) Occupancy RateNumber

ofTenants

Appraisal Values of Properties

58*Figures of the properties for which additional shares were acquired during Sep. ’16 Period among properties held at the end of Mar. ’16 Period are described separately.

(In millions of yen)Sep. '16 Period Mar.'16 Period Sep. '16 Period Sep. '16 Period

Appraisal Appraisal Book Value Appraisal ValueValue Value -Book Value

Tokyo 23 Wards Chiyoda Genki Medical Plaza 6,890 6,890 0 4,790 2,099 5,000Tokyo 23 Wards Chiyoda Kitanomaru Square 78,600 78,300 300 73,195 5,404 81,555Tokyo 23 Wards Chiyoda MD Kanda 8,360 8,170 190 8,780 (420) 9,520Tokyo 23 Wards Chiyoda Kandabashi Park 4,580 4,460 120 4,498 81 4,810Tokyo 23 Wards Chiyoda Otemachi FCN 18,800 18,200 600 15,282 3,517 15,462Tokyo 23 Wards Chiyoda Nibancho Garden 17,900 17,800 100 12,654 5,245 14,700Tokyo 23 Wards Chiyoda Mitsubishi UFJ Trust 51,600 49,300 2,300 29,089 22,510 44,700Tokyo 23 Wards Chiyoda Burex Kojimachi 6,610 6,600 10 5,747 862 7,000Tokyo 23 Wards Chiyoda Sanno Grand 33,300 32,300 1,000 21,175 12,124 20,900Tokyo 23 Wards Chiyoda Yurakucho Denki 8,060 7,980 80 7,711 348 7,200Tokyo 23 Wards Chuo Kodenmacho 2,880 2,800 80 2,784 95 3,173Tokyo 23 Wards Chuo Kyodo (Kayabacho 2Chome) 4,920 4,800 120 4,226 693 4,410Tokyo 23 Wards Chuo Burex Kyobashi 7,520 7,520 0 4,519 3,000 5,250Tokyo 23 Wards Chuo Ginza 1Chome 7,220 7,010 210 6,531 688 6,459Tokyo 23 Wards Chuo Ginza Sanwa 18,400 17,800 600 17,177 1,222 16,830Tokyo 23 Wards Chuo Ryoshin Ginza EM 6,180 5,910 270 7,524 (1,344) 7,999Tokyo 23 Wards Chuo Harumi Front 40,000 39,500 500 29,147 10,852 31,300Tokyo 23 Wards Chuo Harumi Center 19,600 20,600 (1,000) 22,813 (3,213) 26,800Tokyo 23 Wards Minato Akasaka Park 70,100 71,400 (1,300) 60,472 9,627 60,800Tokyo 23 Wards Minato Aoyama Crystal 8,120 7,890 230 7,129 990 7,680Tokyo 23 Wards Minato Clover Shiba-koen 4,600 4,600 0 4,598 1 4,500Tokyo 23 Wards Minato Shiodome 96,800 96,800 0 82,361 14,438 85,950Tokyo 23 Wards Minato Shiba 2Chome Daimon 6,470 6,250 220 5,032 1,437 4,859Tokyo 23 Wards Minato Cosmo Kanasugibashi 3,090 3,000 90 2,539 550 2,808Tokyo 23 Wards Shinjuku Shinjuku Eastside 25,900 25,900 0 22,874 3,025 23,100Tokyo 23 Wards Shinjuku Shinwa 6,970 6,560 410 7,474 (504) 7,830Tokyo 23 Wards Shinjuku Tokyo Opera City 32,500 31,200 1,300 28,448 4,051 31,776Tokyo 23 Wards Taito TIX UENO 24,800 25,300 (500) 20,247 4,552 22,000Tokyo 23 Wards Shinagawa Higashi-Gotanda 1Chome 6,070 5,910 160 4,521 1,548 5,500Tokyo 23 Wards Shinagawa Osaki Front Tower 16,500 16,300 200 9,861 6,638 12,300Tokyo 23 Wards Ota Omori-Eki Higashiguchi 5,600 5,480 120 4,730 869 5,123Tokyo 23 Wards Shibuya Nippon Brunswick (Land with leasehold interest) 5,490 5,490 0 5,572 (82) 5,500Tokyo 23 Wards Shibuya Yoyogi 1Chome 11,600 10,900 700 7,074 4,525 8,700Tokyo 23 Wards Shibuya da Vinci Harajuku 7,100 6,920 180 4,842 2,257 4,885Tokyo 23 Wards Shibuya Jingumae MS 10,500 10,500 0 10,705 (205) 12,200Tokyo 23 Wards Shibuya Shibuya Cross Tower 52,300 51,300 1,000 37,771 14,528 34,600Tokyo 23 Wards Shibuya Ebisu Neonato 16,500 15,600 900 14,228 2,271 14,612Tokyo 23 Wards Nakano Harmony Tower 13,900 13,900 0 10,100 3,799 11,120Tokyo 23 Wards Toshima Otsuka Higashi-Ikebukuro 4,480 4,430 50 3,454 1,025 3,541Tokyo 23 Wards Toshima Ikebukuro 2Chome 1,700 1,690 10 1,581 118 1,728Tokyo 23 Wards Toshima Ikebukuro YS 4,800 4,640 160 4,159 640 4,500Other Areas Hachioji Hachioji First 4,810 4,800 10 4,976 (166) 5,679Other Areas Saitama Saitama Urawa 2,420 2,310 110 2,515 (95) 2,574Other Areas Yokohama MM Park 39,800 38,700 1,100 32,580 7,219 37,400Other Areas Yokohama Queen's 20,000 19,400 600 16,575 3,424 17,200Other Areas Kawasaki Kawasaki Isago 2,610 2,560 50 2,967 (357) 3,375Other Areas Kawasaki Musashi Kosugi STM 4,210 4,100 110 3,885 324 4,000Other Areas Sapporo 8･3 Square Kita 7,700 7,510 190 6,090 1,609 7,100Other Areas Sendai Jozenji Park 998 958 40 1,001 (3) 1,000Other Areas Sendai Higashi Nibancho 13,700 13,500 200 9,269 4,430 9,950Other Areas Sendai Sendai Honma 2,430 2,350 80 2,900 (470) 3,174Other Areas Sendai AER 19,000 19,000 0 18,665 334 18,640Other Areas Kanazawa Kanazawa Park 4,680 4,590 90 4,283 396 4,580Other Areas Nagoya Nishiki Park (existing units) 4,784 4,700 84 4,984 (200) 5,800Other Areas Nagoya Hirokoji Place 10,600 10,400 200 8,227 2,372 8,567Other Areas Nagoya Nagoya Hirokoji 12,600 12,400 200 15,622 (3,022) 14,533Other Areas Nagoya Nagoya Misono 1,270 1,240 30 1,538 (268) 1,865Other Areas Kyoto Shijo Karasuma 5,040 4,920 120 4,110 929 4,400Other Areas Osaka Umeda Square 16,300 16,300 0 15,459 840 15,523Other Areas Osaka Shin-Fujita 18,300 17,800 500 22,264 (3,964) 24,000Other Areas Osaka Sakaisujihonmachi 3,330 3,240 90 3,643 (313) 4,164Other Areas Osaka Midosuji Daiwa 14,300 13,800 500 13,269 1,030 14,314Other Areas Amagasaki Amagasaki Front 9,820 9,690 130 9,016 803 9,300Other Areas Okayama Lit City 4,430 4,370 60 3,280 1,149 4,650Other Areas Hiroshima NHK Hiroshima 2,830 2,660 170 2,959 (129) 2,770Other Areas Fukuoka Tosei Tenjin 1,320 1,320 0 1,389 (69) 1,550Other Areas Fukuoka Tenjin Crystal 2,650 2,590 60 4,112 (1,462) 5,000Other Areas Fukuoka Hinode Tenjin 3,880 3,720 160 3,411 468 3,657

Tokyo 23 Wards 777,310 767,900 9,410 637,430 139,879 688,682Other Areas 233,812 228,928 4,884 219,001 14,810 234,765Total (68 properties) 1,011,122 996,828 14,294 856,432 154,689 923,448

Other Areas Nagoya Nishiki Park (additional acquisition) 246 －－ 225 20 175

777,310 －－ 637,430 139,879 688,682234,058 －－ 219,226 14,831 234,940

1,011,368 －－ 856,657 154,710 923,623Total (68 properties)

Area NameAmount ofDifference

AcquisitionPrice

Existing properties excludingproperties acquired duringSep. '16 Period

Property acquired during Sep. '16 Period

Properties held as of the end of Sep. '16 PeriodTokyo 23 WardsOther Areas

* Unrealized gain or loss means the difference between appraisal value and book value at the end of each period.* Appraisal values at the end of period are survey values determined by institutional appraisers for Mar. ’02 Period through Mar. ’06 Period, or appraisal valuesdetermined by institutional appraisers for Sep. ’06 Period through Sep. ’16 Period, at the end of each period.* As JRE implemented a 2-for-1 split of each investment unit as of January 1, 2014, the figures for Mar. ’02 Period through Sep. ’13 Period are taken the split intoaccount.

59

Trend of Unrealized Gain or Loss


(In millions of yen, except for per-unit data)Mar. '02 Period Sep. '02 Period Mar. '03 Period Sep. '03 Period Mar. '04 Period Sep. '04 Period Mar. '05 Period Sep. '05 Period Mar. '06 Period Sep. '06 Period

A 144,940 165,251 184,704 191,271 217,150 238,961 293,342 339,029 439,799 467,001B 145,580 165,088 184,304 193,058 219,032 240,134 291,350 327,005 413,708 418,607A-B=C (640) 162 399 (1,787) (1,882) (1,173) 1,991 12,023 26,090 48,393

Unrealized gain or loss ratio C/B (0.4)% 0.1% 0.2% (0.9)% (0.9)% (0.5)% 0.7% 3.7% 6.3% 11.6%Units outstanding D 320,800 units 450,800 units 450,800 units 450,800 units 520,800 units 520,800 units 520,800 units 690,800 units 690,800 units 690,800 unitsUnrealized gain or loss per unit C/D=E (1,995) yen 359 yen 887 yen (3,965) yen (3,614) yen (2,252) yen 3,823 yen 17,405 yen 37,768 yen 70,053 yenNet asset value per unit F 260,795 yen 255,212 yen 256,013 yen 256,344 yen 263,538 yen 263,592 yen 264,149 yen 299,627 yen 299,737 yen 300,302 yenAdjusted net asset value per unit E+F=G 258,800 yen 255,571 yen 256,900 yen 252,379 yen 259,923 yen 261,340 yen 267,973 yen 317,032 yen 337,506 yen 370,356 yenUnit price at the end of period H 265,000 yen 255,500 yen 296,000 yen 324,000 yen 415,000 yen 437,500 yen 437,500 yen 457,500 yen 510,000 yen 500,000 yenH/G 1.02 times 1.00 times 1.15 times 1.28 times 1.60 times 1.67 times 1.63 times 1.44 times 1.51 times 1.35 times

Mar. '07 Period Sep. '07 Period Mar. '08 Period Sep. '08 Period Mar. '09 Period Sep. '09 Period Mar. '10 Period Sep. '10 Period Mar. '11 Period Sep. '11 PeriodA 498,741 531,100 619,160 644,700 636,770 591,920 645,239 632,112 642,220 634,357B 427,013 431,463 503,376 525,503 544,245 540,709 614,734 614,593 628,689 622,542A-B=C 71,727 99,636 115,783 119,196 92,524 51,210 30,504 17,518 13,530 11,814

Unrealized gain or loss ratio C/B 16.8% 23.1% 23.0% 22.7% 17.0% 9.5% 5.0% 2.9% 2.2% 1.9%Units outstanding D 820,000 units 820,000 units 886,000 units 886,000 units 886,000 units 886,000 units 978,400 units 978,400 units 978,400 units 978,400 unitsUnrealized gain or loss per unit C/D=E 87,472 yen 121,507 yen 130,681 yen 134,533 yen 104,429 yen 57,799 yen 31,177 yen 17,905 yen 13,828 yen 12,075 yenNet asset value per unit F 331,545 yen 332,035 yen 350,504 yen 345,429 yen 345,403 yen 345,492 yen 340,585 yen 339,877 yen 339,385 yen 340,014 yenAdjusted net asset value per unit E+F=G 419,018 yen 453,543 yen 481,186 yen 479,962 yen 449,832 yen 403,291 yen 371,763 yen 357,783 yen 353,213 yen 352,090 yenUnit price at the end of period H 780,000 yen 690,000 yen 580,000 yen 418,000 yen 378,000 yen 367,000 yen 398,500 yen 379,500 yen 393,500 yen 377,000 yenH/G 1.86 times 1.52 times 1.21 times 0.87 times 0.84 times 0.91 times 1.07 times 1.06 times 1.11 times 1.07 times

Mar. '12 Period Sep. '12 Period Mar. '13 Period Sep. '13 Period Mar. '14 Period Sep. '14 Period Mar. '15 Period Sep. '15 Period Mar. '16 Period Sep. '16 PeriodA 693,230 712,888 758,210 775,147 829,152 843,367 912,125 977,666 996,828 1,011,368B 681,970 700,829 739,901 748,257 789,543 786,106 829,449 869,034 861,360 856,657A-B=C 11,259 12,058 18,308 26,889 39,608 57,260 82,675 108,631 135,467 154,710

Unrealized gain or loss ratio C/B 1.7% 1.7% 2.5% 3.6% 5.0% 7.3% 10.0% 12.5% 15.7% 18.1%Units outstanding D 1,098,080 units 1,098,080 units 1,188,280 units 1,188,280 units 1,188,280 units 1,251,530 units 1,251,530 units 1,309,310 units 1,309,310 units 1,309,310 unitsUnrealized gain or loss per unit C/D=E 10,253 yen 10,981 yen 15,407 yen 22,629 yen 33,332 yen 45,752 yen 66,059 yen 82,968 yen 103,464 yen 118,161 yenNet asset value per unit F 339,565 yen 339,164 yen 341,065 yen 341,178 yen 341,128 yen 348,871 yen 348,909 yen 358,026 yen 358,238 yen 358,478 yenAdjusted net asset value per unit E+F=G 349,818 yen 350,145 yen 356,472 yen 363,807 yen 374,461 yen 394,623 yen 414,969 yen 440,995 yen 461,702 yen 476,640 yenUnit price at the end of period H 364,500 yen 393,000 yen 644,500 yen 574,000 yen 518,000 yen 564,000 yen 565,000 yen 551,000 yen 650,000 yen 605,000 yenH/G 1.04 times 1.12 times 1.81 times 1.58 times 1.38 times 1.43 times 1.36 times 1.25 times 1.41 times 1.27 times

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Appraisal value at the end of periodBook valueUnrealized gain or loss



Details of Appraisal Values at the End of Sep. ’16 Period

60 *Figures of the properties for which additional shares were acquired during Sep. ’16 Period among properties held at the end of Mar. ’16 Period are described separately.


Cap RateAssessed

CFDiscount

RateTerminalCap Rate

Cap RateAssessed

CFDiscount


Cap RateAssessed

CFDiscount


Genki Medical Plaza 5,000 6,890 4.80% 336 4.40% 5.10% 6,890 4.80% 336 4.40% 5.10% 0 0.0% 0.00% 0.0% 0.00% 0.00%

Kitanomaru Square 81,555 78,300 3.50% 2,806 3.30% 3.70% 78,600 3.50% 2,819 3.30% 3.70% 300 0.4% 0.00% 0.5% 0.00% 0.00%

MD Kanda 9,520 8,170 3.80% 320 3.60% 4.00% 8,360 3.70% 319 3.50% 3.90% 190 2.3% (0.10)% (0.5)% (0.10)% (0.10)%

Kandabashi Park 4,810 4,460 3.90% 177 3.70% 4.10% 4,580 3.80% 177 3.60% 4.00% 120 2.7% (0.10)% 0.0% (0.10)% (0.10)%

Otemachi FCN 15,462 18,200 3.20% 604 2.90% 3.30% 18,800 3.10% 606 2.80% 3.20% 600 3.3% (0.10)% 0.2% (0.10)% (0.10)%

Nibancho Garden 14,700 17,800 4.10% 750 3.90% 4.30% 17,900 4.00% 732 3.80% 4.20% 100 0.6% (0.10)% (2.3)% (0.10)% (0.10)%

Mitsubishi UFJ Trust 44,700 49,300 3.10% 1,547 2.80% 3.20% 51,600 3.00% 1,566 2.70% 3.10% 2,300 4.7% (0.10)% 1.3% (0.10)% (0.10)%

Burex Kojimachi 7,000 6,600 3.70% 250 3.50% 3.90% 6,610 3.70% 251 3.50% 3.90% 10 0.2% 0.00% 0.0% 0.00% 0.00%

Sanno Grand 20,900 32,300 3.80% 1,253 3.50% 3.90% 33,300 3.70% 1,255 3.40% 3.80% 1,000 3.1% (0.10)% 0.1% (0.10)% (0.10)%

Yurakucho Denki 7,200 7,980 3.80% 311 3.60% 4.00% 8,060 3.70% 305 3.50% 3.90% 80 1.0% (0.10)% (2.0)% (0.10)% (0.10)%

Kodenmacho 3,173 2,800 4.30% 125 4.10% 4.50% 2,880 4.20% 125 4.00% 4.40% 80 2.9% (0.10)% 0.0% (0.10)% (0.10)%Kyodo (Kayabacho 2Chome) 4,410 4,800 3.90% 193 3.70% 4.10% 4,920 3.80% 192 3.60% 4.00% 120 2.5% (0.10)% (0.2)% (0.10)% (0.10)%

Burex Kyobashi 5,250 7,520 3.60% 276 3.40% 3.80% 7,520 3.60% 276 3.40% 3.80% 0 0.0% 0.00% 0.0% 0.00% 0.00%

Ginza 1Chome 6,459 7,010 3.80% 275 3.60% 4.00% 7,220 3.70% 276 3.50% 3.90% 210 3.0% (0.10)% 0.1% (0.10)% (0.10)%

Ginza Sanwa 16,830 17,800 3.20% 589 3.10% 3.30% 18,400 3.10% 591 3.00% 3.20% 600 3.4% (0.10)% 0.3% (0.10)% (0.10)%

Ryoshin Ginza EM 7,999 5,910 3.80% 233 3.60% 4.00% 6,180 3.70% 237 3.50% 3.90% 270 4.6% (0.10)% 1.8% (0.10)% (0.10)%

Harumi Front 31,300 39,500 4.30% 1,702 4.00% 4.60% 40,000 4.20% 1,685 3.90% 4.50% 500 1.3% (0.10)% (1.0)% (0.10)% (0.10)%

Harumi Center 26,800 20,600 4.30% 917 4.10% 4.50% 19,600 4.20% 852 4.00% 4.40% (1,000) (4.9)% (0.10)% (7.1)% (0.10)% (0.10)%

Akasaka Park 60,800 71,400 3.60% 2,645 3.40% 3.80% 70,100 3.60% 2,598 3.40% 3.80% (1,300) (1.8)% 0.00% (1.8)% 0.00% 0.00%

Aoyama Crystal 7,680 7,890 3.70% 300 3.50% 3.90% 8,120 3.60% 300 3.40% 3.80% 230 2.9% (0.10)% 0.0% (0.10)% (0.10)%

Clover Shiba-koen 4,500 4,600 4.20% 195 3.90% 4.30% 4,600 4.20% 196 3.90% 4.30% 0 0.0% 0.00% 0.0% 0.00% 0.00%

Shiodome 85,950 96,800 3.50% 3,506 3.30% 3.70% 96,800 3.50% 3,497 3.30% 3.70% 0 0.0% 0.00% (0.3)% 0.00% 0.00%

Shiba 2Chome Daimon 4,859 6,250 4.30% 280 4.10% 4.50% 6,470 4.20% 282 4.00% 4.40% 220 3.5% (0.10)% 0.9% (0.10)% (0.10)%

Cosmo Kanasugibashi 2,808 3,000 4.30% 132 4.10% 4.50% 3,090 4.20% 132 4.00% 4.40% 90 3.0% (0.10)% 0.1% (0.10)% (0.10)%

Shinjuku Eastside 23,100 25,900 4.10% 1,066 3.70% 4.20% 25,900 4.10% 1,066 3.70% 4.20% 0 0.0% 0.00% 0.0% 0.00% 0.00%

Shinwa 7,830 6,560 4.00% 270 3.80% 4.20% 6,970 3.90% 280 3.70% 4.10% 410 6.3% (0.10)% 3.6% (0.10)% (0.10)%

Tokyo Opera City 31,776 31,200 4.00% 1,337 3.80% 4.20% 32,500 3.90% 1,354 3.70% 4.10% 1,300 4.2% (0.10)% 1.2% (0.10)% (0.10)%

TIX UENO 22,000 25,300 4.00% 1,033 3.80% 4.20% 24,800 3.90% 986 3.70% 4.10% (500) (2.0)% (0.10)% (4.5)% (0.10)% (0.10)%

Higashi-Gotanda 1Chome 5,500 5,910 4.10% 245 3.80% 4.20% 6,070 4.00% 245 3.70% 4.10% 160 2.7% (0.10)% 0.0% (0.10)% (0.10)%

Osaki Front Tower 12,300 16,300 4.30% 931 4.10% 4.50% 16,500 4.20% 929 4.00% 4.40% 200 1.2% (0.10)% (0.3)% (0.10)% (0.10)%

Omori-Eki Higashiguchi 5,123 5,480 4.70% 270 4.50% 4.90% 5,600 4.60% 270 4.40% 4.80% 120 2.2% (0.10)% 0.1% (0.10)% (0.10)%

Nippon Brunswick (Landwith leasehold interest) 5,500 5,490 - 180 3.40% - 5,490 - 180 3.45% - 0 0.0% - 0.0% 0.05% -

Yoyogi 1Chome 8,700 10,900 3.80% 426 3.60% 4.00% 11,600 3.70% 440 3.50% 3.90% 700 6.4% (0.10)% 3.2% (0.10)% (0.10)%

da Vinci Harajuku 4,885 6,920 4.00% 278 3.70% 4.10% 7,100 3.90% 278 3.60% 4.00% 180 2.6% (0.10)% 0.1% (0.10)% (0.10)%

Jingumae MS 12,200 10,500 3.60% 387 3.40% 3.80% 10,500 3.50% 379 3.30% 3.70% 0 0.0% (0.10)% (2.1)% (0.10)% (0.10)%

Shibuya Cross Tower 34,600 51,300 3.50% 1,855 3.30% 3.70% 52,300 3.50% 1,883 3.30% 3.70% 1,000 1.9% 0.00% 1.5% 0.00% 0.00%

Ebisu Neonato 14,612 15,600 3.80% 616 3.60% 4.00% 16,500 3.70% 632 3.50% 3.90% 900 5.8% (0.10)% 2.6% (0.10)% (0.10)%

Harmony Tower 11,120 13,900 4.10% 594 3.90% 4.30% 13,900 4.10% 594 3.90% 4.30% 0 0.0% 0.00% 0.0% 0.00% 0.00%

Otsuka Higashi-Ikebukuro 3,541 4,430 5.10% 228 4.80% 5.20% 4,480 5.00% 226 4.70% 5.10% 50 1.1% (0.10)% (0.8)% (0.10)% (0.10)%

Ikebukuro 2Chome 1,728 1,690 4.70% 80 4.50% 4.90% 1,700 4.60% 79 4.40% 4.80% 10 0.6% (0.10)% (1.2)% (0.10)% (0.10)%

Ikebukuro YS 4,500 4,640 4.50% 214 4.30% 4.70% 4,800 4.40% 216 4.20% 4.60% 160 3.4% (0.10)% 1.0% (0.10)% (0.10)%

Hachioji First 5,679 4,800 4.90% 246 4.70% 5.10% 4,810 4.90% 246 4.70% 5.10% 10 0.2% 0.00% 0.0% 0.00% 0.00%

Saitama Urawa 2,574 2,310 5.10% 121 4.90% 5.30% 2,420 5.00% 125 4.80% 5.20% 110 4.8% (0.10)% 3.7% (0.10)% (0.10)%

MM Park 37,400 38,700 4.40% 1,729 4.20% 4.60% 39,800 4.30% 1,735 4.10% 4.50% 1,100 2.8% (0.10)% 0.3% (0.10)% (0.10)%

Queen's 17,200 19,400 4.50% 880 4.20% 4.80% 20,000 4.40% 890 4.10% 4.70% 600 3.1% (0.10)% 1.1% (0.10)% (0.10)%

Kawasaki Isago 3,375 2,560 5.00% 131 4.80% 5.20% 2,610 4.90% 130 4.70% 5.10% 50 2.0% (0.10)% (0.2)% (0.10)% (0.10)%

Musashi Kosugi STM 4,000 4,100 4.90% 202 4.70% 5.10% 4,210 4.80% 203 4.60% 5.00% 110 2.7% (0.10)% 0.5% (0.10)% (0.10)%

8･3 Square Kita 7,100 7,510 5.10% 384 4.90% 5.30% 7,700 5.10% 398 4.90% 5.30% 190 2.5% 0.00% 3.7% 0.00% 0.00%

Jozenji Park 1,000 958 5.80% 57 5.70% 6.00% 998 5.70% 58 5.50% 5.90% 40 4.2% (0.10)% 1.8% (0.20)% (0.10)%

Higashi Nibancho 9,950 13,500 5.20% 656 5.00% 5.40% 13,700 5.10% 681 4.90% 5.30% 200 1.5% (0.10)% 3.9% (0.10)% (0.10)%

Sendai Honma 3,174 2,350 5.50% 135 5.30% 5.70% 2,430 5.40% 137 5.20% 5.60% 80 3.4% (0.10)% 1.1% (0.10)% (0.10)%

AER 18,640 19,000 4.30% 850 4.10% 4.50% 19,000 4.30% 853 4.10% 4.50% 0 0.0% 0.00% 0.4% 0.00% 0.00%

Kanazawa Park 4,580 4,590 6.00% 279 5.80% 6.20% 4,680 5.90% 279 5.70% 6.10% 90 2.0% (0.10)% 0.1% (0.10)% (0.10)%

Nishiki Park(existing units)

5,800 4,700 5.20% 253 5.00% 5.40% 4,784 5.10% 253 4.90% 5.30% 84 1.8% (0.10)% 0.1% (0.10)% (0.10)%

Hirokoji Place 8,567 10,400 4.60% 482 4.40% 4.80% 10,600 4.50% 481 4.30% 4.70% 200 1.9% (0.10)% (0.2)% (0.10)% (0.10)%

Nagoya Hirokoji 14,533 12,400 4.80% 611 4.60% 5.00% 12,600 4.70% 606 4.50% 4.90% 200 1.6% (0.10)% (0.8)% (0.10)% (0.10)%

Nagoya Misono 1,865 1,240 5.20% 65 5.00% 5.40% 1,270 5.10% 66 4.90% 5.30% 30 2.4% (0.10)% 0.4% (0.10)% (0.10)%

Shijo Karasuma 4,400 4,920 5.20% 258 5.00% 5.40% 5,040 5.10% 259 4.90% 5.30% 120 2.4% (0.10)% 0.7% (0.10)% (0.10)%

Umeda Square 15,523 16,300 4.00% 678 3.80% 4.20% 16,300 4.00% 678 3.80% 4.20% 0 0.0% 0.00% 0.0% 0.00% 0.00%

Shin-Fujita 24,000 17,800 4.60% 855 4.40% 4.80% 18,300 4.50% 857 4.30% 4.70% 500 2.8% (0.10)% 0.3% (0.10)% (0.10)%

Sakaisujihonmachi 4,164 3,240 4.90% 169 4.70% 5.10% 3,330 4.80% 169 4.60% 5.00% 90 2.8% (0.10)% 0.2% (0.10)% (0.10)%

Midosuji Daiwa 14,314 13,800 4.30% 606 4.10% 4.50% 14,300 4.20% 612 4.00% 4.40% 500 3.6% (0.10)% 1.1% (0.10)% (0.10)%

Amagasaki Front 9,300 9,690 5.70% 557 5.50% 5.90% 9,820 5.60% 555 5.40% 5.80% 130 1.3% (0.10)% (0.5)% (0.10)% (0.10)%

Lit City 4,650 4,370 5.90% 259 5.70% 6.10% 4,430 5.80% 258 5.60% 6.00% 60 1.4% (0.10)% (0.4)% (0.10)% (0.10)%

NHK Hiroshima 2,770 2,660 5.80% 148 5.70% 6.00% 2,830 5.70% 161 5.60% 5.90% 170 6.4% (0.10)% 9.0% (0.10)% (0.10)%

Tosei Tenjin 1,550 1,320 5.50% 76 5.40% 5.70% 1,320 5.40% 74 5.30% 5.60% 0 0.0% (0.10)% (1.9)% (0.10)% (0.10)%

Tenjin Crystal 5,000 2,590 5.10% 137 5.00% 5.30% 2,650 5.00% 137 4.90% 5.20% 60 2.3% (0.10)% 0.2% (0.10)% (0.10)%

Hinode Tenjin 3,657 3,720 5.10% 193 4.80% 5.10% 3,880 5.00% 195 4.70% 5.00% 160 4.3% (0.10)% 1.0% (0.10)% (0.10)%

Total (68 properties) 923,448 996,828 40,782 1,011,122 40,771 14,294 1.4% 0.0%Nishiki Park(additional acquisition) 175 246 5.10% 12 4.90% 5.30%

Total (68 properties) 923,623 1,011,368 40,784

DCFAppraisal

Value

Changein

value

DCNameAcquisition

Price

Appraisal Value as of the End of PeriodMar. '16 Period Sep. '16 Period Change

AppraisalValue

DC DCF DCFAppraisal

Value

DC

Historical Appraisal Values and NCF

61

Overall

Tokyo 23 Wards

Other Areas

49 properties of JRE’s portfolio with constantly held ownership without increase or decrease of share between the end of Mar. ’12 Period through the end of Sep. ’16 Period.

Value: Calculated using direct capitalization (DC) method based on survey or appraisal value as of the end of each periodNCF: Net cash flow in the above DC methodYield: annualized NCF / Value

（Value and NCF: In millions of yen）

NCF and YieldValue

Value NCF and Yield

Value NCF and Yield

( In millions of yen )

PropertyManagement

Expenses

UtilitiesExpenses

Property and OtherTaxes

CasualtyInsurance

RepairingExpenses Depreciation (1)

OtherExpenses

Genki Medical Plaza 222 71 13 17 17 0 0 20 2 151 171 - 171Kitanomaru Square 1,719 745 120 78 94 2 38 411 0 973 1,384 11 1,373MD Kanda 223 86 17 17 20 0 1 28 - 136 164 0 164Kandabashi Park 115 41 1 - 16 0 5 17 - 74 91 4 86Otemachi FCN 344 177 24 18 45 0 - 88 0 166 255 - 255Nibancho Garden 476 234 60 26 53 0 3 90 - 241 332 2 329Mitsubishi UFJ Trust 998 384 53 74 135 1 5 112 1 613 726 77 648Burex Kojimachi 150 79 - - 13 0 2 62 - 71 133 - 133Sanno Grand 924 392 102 63 105 1 43 75 - 532 608 42 565Yurakucho Denki 267 129 32 23 41 0 0 31 - 137 168 3 165Kodenmacho 113 58 14 8 11 0 7 13 3 54 67 0 66Kyodo (Kayabacho 2Chome) 145 59 9 10 11 0 5 21 - 86 107 2 104Burex Kyobashi 157 57 - - 11 0 5 39 - 100 140 - 140Ginza 1Chome 145 94 12 7 11 0 2 61 - 50 112 1 110Ginza Sanwa 378 148 28 19 65 0 12 21 0 230 251 65 186Ryoshin Ginza EM 162 85 14 13 14 0 2 40 0 76 116 0 116Harumi Front 1,248 719 145 131 75 1 5 360 0 529 889 - 889Harumi Center 608 399 71 43 47 1 24 212 0 208 421 1 419Akasaka Park 2,235 1,232 226 269 273 3 67 388 3 1,002 1,391 24 1,367Aoyama Crystal 217 95 14 13 29 0 7 30 0 121 152 11 140Clover Shiba-koen 100 48 10 5 6 0 1 23 0 51 74 0 74Shiodome 1,885 770 161 111 142 2 14 335 2 1,114 1,449 30 1,418Shiba 2Chome Daimon 277 158 35 26 38 0 21 35 0 118 154 3 150Cosmo Kanasugibashi 99 47 12 7 13 0 0 13 0 52 66 1 65Shinjuku Eastside 658 282 44 53 49 0 0 132 0 375 508 - 508Shinwa 214 85 20 17 19 0 2 25 - 128 153 16 136Tokyo Opera City 1,469 1,049 Undisclosed Undisclosed Undisclosed Undisclosed Undisclosed Undisclosed Undisclosed 420 Undisclosed 72 UndisclosedTIX UENO 651 390 59 48 38 1 4 237 0 261 498 7 491Higashi-Gotanda 1Chome 182 95 14 21 14 0 1 42 0 86 129 0 128Osaki Front Tower 711 499 68 40 27 0 12 256 93 212 468 - 468Omori-Eki Higashiguchi 234 130 27 21 25 0 23 31 - 103 134 123 11Nippon Brunswick (Land with leasehold interest) 60 20 - - 20 - - - - 39 39 - 39Yoyogi 1Chome 304 137 24 20 23 0 0 67 - 167 235 6 229da Vinci Harajuku 191 55 10 10 16 0 1 14 - 136 151 - 151Jingumae MS 166 137 26 19 45 0 7 37 - 29 67 16 50Shibuya Cross Tower 1,398 1,226 182 122 123 2 361 433 0 171 605 201 403Ebisu Neonato 451 214 49 25 37 1 3 95 - 236 332 10 321Harmony Tower 444 139 14 - 57 1 12 53 - 304 358 - 358Otsuka Higashi-Ikebukuro 189 94 19 20 12 0 1 40 - 95 135 - 135Ikebukuro 2Chome 67 29 7 6 5 0 1 8 0 37 45 - 45Ikebukuro YS 190 78 17 16 14 0 0 30 - 111 142 2 139Hachioji First 240 126 49 4 26 1 11 33 - 114 147 20 127Saitama Urawa 109 50 13 8 9 0 1 17 - 59 76 - 76MM Park 1,320 709 137 183 78 1 13 294 0 611 905 15 890Queen's 992 691 206 113 111 3 23 225 7 300 525 152 373Kawasaki Isago 145 76 24 13 13 0 0 23 - 69 93 - 93Musashi Kosugi STM 161 62 21 3 11 0 0 27 - 98 125 2 1238･3 Square Kita 320 180 29 56 22 0 2 69 - 140 209 - 209Jozenji Park 61 37 9 8 6 0 0 10 - 24 35 0 34Higashi Nibancho 554 305 77 55 39 0 3 127 - 248 376 3 372Sendai Honma 129 65 16 13 15 0 2 17 0 63 80 - 80AER 619 394 85 55 62 0 28 161 0 225 386 25 360Kanazawa Park 495 343 97 51 64 1 60 65 1 152 217 19 198Nishiki Park 278 168 55 27 23 0 1 54 6 109 163 0 162Hirokoji Place 383 184 39 32 33 0 3 74 - 199 273 - 273Hirokoji Sakae 0 6 0 0 5 - - - - (5) (5) - (5)Nagoya Hirokoji 662 561 92 54 60 1 206 147 0 100 247 437 (189)Nagoya Misono 70 60 10 7 6 0 7 28 - 10 38 6 32Shijo Karasuma 185 116 24 18 11 0 1 59 0 69 128 1 127Kyoto Kawaramachi 1 5 0 - 5 - - - - (3) (3) - (3)Umeda Square 449 225 40 48 47 0 8 80 - 223 304 13 291Shin-Fujita 684 515 85 91 75 1 36 223 - 169 393 137 255Sakaisujihonmachi 220 131 41 28 35 0 2 22 - 88 111 0 110Midosuji Daiwa 529 246 60 40 73 1 2 68 0 282 351 - 351Amagasaki Front 439 253 64 36 25 0 4 121 0 186 307 0 307Lit City 254 149 31 21 19 1 9 65 0 104 170 - 170NHK Hiroshima 268 181 50 28 23 0 7 46 24 86 133 15 118Tosei Tenjin 76 43 12 8 7 0 2 10 0 32 43 3 40Tenjin Crystal 156 133 22 20 18 0 9 61 0 23 84 - 84Hinode Tenjin 159 78 24 15 14 0 5 19 0 80 100 16 84

Total 30,773 17,091 3,519 2,708 2,936 57 1,181 6,500 187 13,682 20,182 1,613 18,569

Property Name

Performance （April 1, 2016 - September 30,2016）Property-

relatedRevenues

Property-related

Expenses

(2) Property-related Profitsand Losses

(3) NOI((1)+(2))

(4) Capex NCF((3)-(4))

Performance (Operating Results) of Each Property for Sep. ’16 Period

62* At the request of the co-owners of Tokyo Opera City Building, the breakdown of property-related Expenses ,NOI・NCF are not disclosed.* Capex represents construction cost corresponding to capital expenditure during the period（excluding the brokerage fees related to real estate acquisition, incidental

expenses of acquisition such as real-estate acquisition tax, which are reflected in the book value, and expenses and furniture capitalized as construction in progress）.

*Property management companies are the companies to be entrusted PM for the office units by JRE.

Other Portfolio Information for Sep. ’16 Period

63


Tokyo 23 Wards Chiyoda Genki Medical Plaza 6,722.02 10/31/02 - 100.0% Mitsubishi Jisho Property Management Co., Ltd.Tokyo 23 Wards Chiyoda Kitanomaru Square 57,279.20 02/24/06 - 100.0% Mitsubishi Jisho Property Management Co., Ltd.Tokyo 23 Wards Chiyoda MD Kanda 8,185.11 05/31/02 - 100.0% Mitsui & Co. Foresight Ltd.Tokyo 23 Wards Chiyoda Kandabashi Park 9,370.25 08/15/02 - 56.76% Mitsubishi Estate Co., Ltd.Tokyo 23 Wards Chiyoda Otemachi FCN 239,769.07 03/31/14 - 3.3852192% NTT Urban Development Building Service Corp.Tokyo 23 Wards Chiyoda Nibancho Garden 57,031.06 04/01/05 - 31.345% The Dai-Ichi Building Co., Ltd.Tokyo 23 Wards Chiyoda Mitsubishi UFJ Trust 108,171.67 03/28/07 - 19.38402% Mitsubishi Estate Co., Ltd.Tokyo 23 Wards Chiyoda Burex Kojimachi 6,526.64 07/29/05 - 100.0% Space Design, Inc.Tokyo 23 Wards Chiyoda Sanno Grand 33,875.95 01/31/05 04/03/06 99.0% Mitsubishi Estate Co., Ltd.Tokyo 23 Wards Chiyoda Yurakucho Denki 70,287.65 08/01/03 - 10.78% Yuden Building Kanri Co., Ltd.Tokyo 23 Wards Chuo Kodenmacho 5,822.88 09/25/01 - 100.0% The Dai-Ichi Building Co., Ltd.Tokyo 23 Wards Chuo Kyodo (Kayabacho 2Chome) 5,505.80 03/01/11 - 100.0% Mitsui & Co. Foresight Ltd.Tokyo 23 Wards Chuo Burex Kyobashi 5,470.54 07/22/02 - 100.0% Space Design, Inc.Tokyo 23 Wards Chuo Ginza 1Chome 4,976.85 03/02/15 - 100.0% Mitsubishi Jisho Property Management Co., Ltd.Tokyo 23 Wards Chuo Ginza Sanwa 8,851.00 03/10/05 - 70.95% Mitsubishi Jisho Property Management Co., Ltd.Tokyo 23 Wards Chuo Ryoshin Ginza EM 5,751.68 03/15/05 05/24/10 100.0% The Dai-Ichi Building Co., Ltd.Tokyo 23 Wards Chuo Harumi Front 45,458.90 01/07/13 - 100.0% Mitsubishi Estate Co., Ltd.Tokyo 23 Wards Chuo Harumi Center 26,447.27 12/18/07 - 100.0% Mitsubishi Estate Co., Ltd.Tokyo 23 Wards Minato Akasaka Park 97,489.16 11/15/11 - 100.0% Mitsubishi Estate Co., Ltd.Tokyo 23 Wards Minato Aoyama Crystal 8,094.36 03/14/03 - 100.0% XYMAX ALPHA CorporationTokyo 23 Wards Minato Clover Shiba-koen 3,496.01 01/20/15 - 100.0% Mitsubishi Jisho Property Management Co., Ltd.

Tokyo 23 WardsMinato

Shiodome 115,930.83 12/19/08 01/15/1005/01/15

45.0% Mitsubishi Jisho Property Management Co., Ltd.

Tokyo 23 Wards Minato Shiba 2Chome Daimon 16,235.10 09/10/01 - 100.0% Tokio Marine & Nichido Facilities, Inc.Tokyo 23 Wards Minato Cosmo Kanasugibashi 5,420.93 09/25/01 - 100.0% The Dai-Ichi Building Co., Ltd.Tokyo 23 Wards Shinjuku Shinjuku Eastside 167,245.46 10/01/14 - 14.0% Mitsubishi Estate Co., Ltd.Tokyo 23 Wards Shinjuku Shinwa 8,291.69 09/01/04 - 100.0% Tokio Marine & Nichido Facilities, Inc.Tokyo 23 Wards Shinjuku Tokyo Opera City 232,996.81 09/13/05 03/24/10 31.325% Tokyo Opera City Property Management co.,ltd.Tokyo 23 Wards Taito TIX UENO 23,727.48 06/15/12 - 94.040229% The Dai-Ichi Building Co., Ltd.Tokyo 23 Wards Shinagawa Higashi-Gotanda 1Chome 6,460.39 11/01/04 - 100.0% Sohgo Housing Co., LtdTokyo 23 Wards Shinagawa Osaki Front Tower 23,673.92 02/01/11 - 100.0% Mitsubishi Estate Co., Ltd.Tokyo 23 Wards Ota Omori-Eki Higashiguchi 14,095.34 09/10/01 - 100.0% Tokio Marine & Nichido Facilities, Inc.Tokyo 23 Wards Shibuya Yoyogi 1Chome 10,778.10 04/01/04 - 100.0% Tokio Marine & Nichido Facilities, Inc.Tokyo 23 Wards Shibuya da Vinci Harajuku 4,359.20 11/22/02 - 100.0% XYMAX ALPHA CorporationTokyo 23 Wards Shibuya Jingumae MS 9,420.42 10/09/03 - 100.0% The Dai-Ichi Building Co., Ltd.Tokyo 23 Wards Shibuya Shibuya Cross Tower 61,862.33 11/30/01 - 100.0% Mitsubishi Jisho Property Management Co., Ltd.

Tokyo 23 WardsShibuya

Ebisu Neonato 36,598.38 11/14/0304/01/0402/18/14 44.718394% Mitsubishi Jisho Property Management Co., Ltd.

Tokyo 23 WardsNakano

Harmony Tower 72,729.31 02/28/0512/19/1203/27/15 38.382307% Mitsubishi Jisho Property Management Co., Ltd.

Tokyo 23 Wards Toshima Otsuka Higashi-Ikebukuro 9,531.28 09/25/01 - 100.0% Sohgo Housing Co., LtdTokyo 23 Wards Toshima Ikebukuro 2Chome 3,157.51 09/25/01 - 100.0% Sohgo Housing Co., LtdTokyo 23 Wards Toshima Ikebukuro YS 7,464.64 08/02/04 - 100.0% XYMAX ALPHA CorporationOther Areas Hachioji Hachioji First 18,329.98 03/31/05 03/19/08 80.4% Sohgo Housing Co., LtdOther Areas Saitama Saitama Urawa 6,258.59 09/25/01 10/11/01 100.0% The Dai-Ichi Building Co., Ltd.Other Areas Yokohama MM Park 49,037.51 03/24/08 - 100.0% Mitsubishi Estate Co., Ltd.Other Areas Yokohama Queen's 498,282.77 01/31/14 - 11.11481% Mitsubishi Estate Co., Ltd.Other Areas Kawasaki Kawasaki Isago 9,623.83 09/25/01 - 100.0% Sohgo Housing Co., LtdOther Areas Kawasaki Musashi Kosugi STM 22,839.61 03/25/08 - 34.32% Sohgo Housing Co., LtdOther Areas Sapporo 8･3 Square Kita 16,096.97 06/01/07 - 100.0% Mitsubishi Jisho Property Management Co., Ltd.Other Areas Sendai Jozenji Park 7,648.33 01/31/05 - 50.0% Mitsubishi Estate Co., Ltd.Other Areas Sendai Higashi Nibancho 27,680.45 01/07/13 - 100.0% Mitsubishi Jisho Property Management Co., Ltd.Other Areas Sendai Sendai Honma 8,247.50 09/25/01 06/28/06 100.0% The Dai-Ichi Building Co., Ltd.Other Areas Sendai AER 73,186.57 09/01/15 - 55.35443% Mitsubishi Jisho Property Management Co., Ltd.Other Areas Kanazawa Kanazawa Park 43,481.20 02/28/02 03/03/03 89.0% Mitsubishi Estate Co., Ltd.

Other AreasNagoya

Nishiki Park 25,091.91 10/02/0611/01/0606/09/1404/01/16

71.74301% Mitsubishi Estate Co., Ltd.

Other Areas Nagoya Hirokoji Place 15,947.29 07/31/13 - 100.0% The Dai-Ichi Building Co., Ltd.Other Areas Nagoya Nagoya Hirokoji 33,377.73 09/10/01 - 100.0% Mitsubishi Jisho Property Management Co., Ltd.Other Areas Nagoya Nagoya Misono 5,348.00 08/08/03 - 100.0% Mitsubishi Jisho Property Management Co., Ltd.Other Areas Kyoto Shijo Karasuma 9,185.98 09/03/13 - 100.0% Mitsubishi Jisho Property Management Co., Ltd.Other Areas Osaka Umeda Square 18,673.28 04/01/15 - 100.0% Mitsubishi Jisho Property Management Co., Ltd.Other Areas Osaka Shin-Fujita 45,411.31 09/01/08 - 100.0% Mitsubishi Jisho Property Management Co., Ltd.Other Areas Osaka Sakaisujihonmachi 17,145.59 09/25/01 12/26/03 100.0% The Dai-Ichi Building Co., Ltd.Other Areas Osaka Midosuji Daiwa 31,213.27 09/25/01 02/28/02 100.0% The Dai-Ichi Building Co., Ltd.Other Areas Amagasaki Amagasaki Front 24,055.58 03/25/15 - 100.0% Mitsubishi Jisho Property Management Co., Ltd.Other Areas Okayama Lit City 52,653.19 02/01/06 - 27.7488% Taisei-Yuraku Real Estate Co.,Ltd.Other Areas Hiroshima NHK Hiroshima 35,217.28 03/25/04 03/03/08 48.753% Mitsubishi Estate Co., Ltd.Other Areas Fukuoka Tosei Tenjin 5,588.57 09/25/01 - 100.0% The Dai-Ichi Building Co., Ltd.Other Areas Fukuoka Tenjin Crystal 10,432.04 06/01/05 - 100.0% The Dai-Ichi Building Co., Ltd.Other Areas Fukuoka Hinode Tenjin 12,527.07 09/10/01 - 74.4844% Tokio Marine & Nichido Facilities, Inc.

Property Management CompanyArea NameAcquisition

Date

AdditionalAcquisition

DateOwnership

Floor Area(Whole Building)

(㎡)

PML Values

64

Tokyo 23 Wards

Genki Medical Plaza 09/1985 3.4%Kitanomaru Square 01/2006 1.6%MD Kanda 02/1998 5.0%Kandabashi Park 07/1993 5.0%Otemachi FCN 10/2012 0.9%Nibancho Garden 04/2004 2.1%Mitsubishi UFJ Trust 02/2003 1.4%Burex Kojimachi 01/2005 4.1%Sanno Grand 09/1966 3.6%Yurakucho Denki 09/1975 3.7%Kodenmacho 11/1991 3.3%Kyodo (Kayabacho 2Chome) 04/1991 3.6%Burex Kyobashi 02/2002 4.7%Ginza 1Chome 05/2008 2.1%Ginza Sanwa 10/1982 3.7%Ryoshin Ginza EM 10/1998 2.8%Harumi Front 02/2012 2.0%Harumi Center 11/2006 3.5%Akasaka Park 07/1993 1.4%Aoyama Crystal 12/1982 5.4%Clover Shiba-koen 02/2006 4.6%Shiodome 12/2007 1.4%Shiba 2Chome Daimon 03/1984 3.0%Cosmo Kanasugibashi 03/1992 7.3%Shinjuku Eastside 03/2012 1.2%Shinwa 11/1989 7.0%Tokyo Opera City 07/1996 2.0%

Taito TIX UENO 07/2010 2.0%Higashi-Gotanda 1Chome 07/2004 2.6%Osaki Front Tower 06/2005 3.4%

Ota Omori-Eki Higashiguchi 07/1989 2.8%Yoyogi 1Chome 10/2003 2.2%da Vinci Harajuku 12/1987 9.6%Jingumae MS 03/1998 3.3%Shibuya Cross Tower 04/1976 2.2%Ebisu Neonato 10/1994 2.4%

Nakano Harmony Tower 03/1997 2.0%Otsuka Higashi-Ikebukuro 11/1987 6.1%Ikebukuro 2Chome 05/1990 3.4%Ikebukuro YS 12/1989 5.7%

Shinagawa

Shibuya

Toshima

PML Value

Chiyoda

Chuo

Minato

Shinjuku

Name Completion DateArea

65

Other Areas

PML（Probable Maximum Loss）Value: Percentage of Probable Maximum Loss due to EarthquakeThe percentage of the expense in restoring an earthquake-struck building to pre-earthquake condition to the total replacement value（i.e. , total expense incurred from an earthquake divided by replacement value of a building), when assuming a catastrophic earthquake that is likely to occur with a 10% probability over a span of 50 years (a 10% probability of an earthquake occurring in 50 years can be translated into one occurring once in 475 years, which means an earthquake with a recurrence span of 475 years or one that might occur once in 475 years).

* Completion date is the data of construction.

Portfolio PML 1.8%

Hachioji Hachioji First 07/1996 3.9%Saitama Saitama Urawa 03/1990 7.2%

MM Park 12/2007 4.0%Queen's 06/1997 3.3%Kawasaki Isago 12/1990 4.1%Musashi Kosugi STM 10/1990 3.8%

Sapporo 8･3 Square Kita 12/2006 1.6%Jozenji Park 01/1993 3.3%Higashi Nibancho 07/2008 1.8%Sendai Honma 11/1991 2.2%AER 03/1998 1.3%

Kanazawa Kanazawa Park 10/1991 4.8%Nishiki Park 08/1995 2.4%Hirokoji Place 12/2004 3.1%Nagoya Hirokoji 05/1987 2.4%Nagoya Misono 09/1991 4.1%

Kyoto Shijo Karasuma 01/2010 11.7%Umeda Square 07/1995 7.4%Shin-Fujita 04/1995 4.0%Sakaisujihonmachi 10/1992 7.4%Midosuji Daiwa 09/1991 6.9%

Amagasaki Amagasaki Front 10/2008 5.3%Okayama Lit City 06/2005 0.6%Hiroshima NHK Hiroshima 08/1994 1.1%

Tosei Tenjin 03/1992 4.3%Tenjin Crystal 08/1993 3.1%Hinode Tenjin 08/1987 4.2%

Nagoya

Osaka

Fukuoka

PML Value

Yokohama

Kawasaki

Sendai

Name Completion DateArea

Portfolio Map

Nibancho Garden

銀座三和ビル

3 Central Wards of Tokyo (Chiyoda/Chuo/Minato)

66

Ginza Sanwa Building

1 Genki Medical Plaza2 Kitanomaru Square3 MD Kanda Building4 Kandabashi Park Building5 Otemachi Financial City North Tower6 Nibancho Garden7 Mitsubishi UFJ Trust and Banking

Building8 Burex Kojimachi Building9 Sanno Grand Building

10 Yurakucho Denki Building11 Kodenmacho Shin-Nihonbashi

Building12 Kyodo Building (Kayabacho 2Chome)

13 Burex Kyobashi Building14 Ginza 1Chome East Building15 Ginza Sanwa Building16 Ryoshin Ginza East Mirror Building17 Harumi Front18 Harumi Center Building19 Akasaka Park Building20 Aoyama Crystal Building21 Clover Shiba-koen22 Shiodome Building23 Shiba 2Chome Daimon Building24 Cosmo Kanasugibashi Building

1

23

4 5

6 78

9 10

11

1213

14

1516

17

18

19

20

21

2223

24

Chuo Line

YamanoteLine

Tokyo

Shinagawa

Minato

Chiyoda

Chuo

御堂筋ダイワビル

23 Wards of Tokyo (excluding 3 Central Wards)

Other Areas

67

As of September 30, 2016

1 Hachioji First Square2 Saitama Urawa Building3 MM Park Building4 Queen’s Tower A5 Kawasaki Isago Building6 Musashi Kosugi STM Building7 8･3 Square Kita Building8 Jozenji Park Building9 Higashi Nibancho Square10 Sendai Honcho Honma Building11 AER12 Kanazawa Park Building13 Nishiki Park Building14 Nagoya Hirokoji Place15 Nagoya Hirokoji Building16 Nagoya Misono Building17 Shijo Karasuma Center Building

18 Umeda Square Building19 Shin-Fujita Building20 Sakaisujihonmachi Building21 Midosuji Daiwa Building22 Amagasaki Front Building23 Lit City Building24 NHK Hiroshima Broadcasting Center Building25 Tosei Tenjin Building26 Tenjin Crystal Building27 Hinode Tenjin Building

1 Shinjuku Eastside Square2 Shinwa Building3 Tokyo Opera City Building4 TIXTOWER UENO5 Higashi-Gotanda 1Chome Building6 Osaki Front Tower7 Omori-Eki Higashiguchi Building8 Nippon Brunswick Building

(Land with leasehold interest)

9 Yoyogi 1Chome Building10 da Vinci Harajuku11 Jingumae Media Square Building12 Shibuya Cross Tower13 Ebisu Neonato14 Harmony Tower15 Otsuka Higashi-Ikebukuro Building16 Ikebukuro 2Chome Building17 Ikebukuro YS Building

Jingumae Media Square Building

Osaki Front Tower

8･3 Square Kita Building

Nagoya HirokojiBuilding

Midosuji Daiwa Building

1

2・3

4

7

910・1112

13

14

1516

5

17

6

8

Ikebukuro

Shinjuku

Shibuya

Tokyo

Shinagawa

8・9・10・11

2

12

1723

252627

1

22

7

18192021

24

3・4・5・613141516

Balanced portfolio of properties, mostly large scale and competitive properties. The ratio of properties with standard floor area of 200 tsubo is approximately 85% on an acquisition price basis.JRE keeps property management agreements with several property management companies in each area with a view to

assure fair competition among them and accumulate know-how through them.

Portfolio Classification by Area and Floor Space

68

Floor Size by Area, Property and PM Companies

Blue Italic shows the property acquired in Sep. '16 Period Red Italic shows the transferred propertiesTotal Numberof Buildings

Nibancho Garden 1,117 Shinjuku Eastside 1,789 MM Park 828 Kanazawa Park 625 18

Shiodome 1,059 Toky o Opera City 653 Musashi KosugiSTM

619 Lit City 550 524,125

Otemachi FCN 709 Queen's 476 Amagasaki Front 517 (57.1%)Harumi Front 693 Higashi Nibancho 468Sanno Grand 666Harumi Center 648Akasaka Park 617Kitanomaru Square 568Mitsubishi UFJTrust

537

Property E Harmony Tower 413 Hachioji First 335 Shin-Fujita 440 Hirokoji Place 421 8･3 Square Kita 373 15Yurakucho Denki 398 Ebisu Neonato 373 Midosuji Daiwa 341 Nagoy a Hirokoji 333 AER 302 202,294Shiba 2ChomeDaimon

352 Osaki Front Tower 368 NHK Hiroshima 301 (22.0%)

TIX UENO 329Shibuy a CrossTower

313

Kandabashi Park 212 Property H Property B Sakaisujihonmachi 284 Nishiki Park 209 Hinode Tenjin 252 11Otsuka Higashi-Ikebukuro

273 Shijo Karasuma 264 58,200

Ikebukuro YS 251 Property J (6.3%)Yoy ogi 1Chome 230Shinwa 227Omori-EkiHigashiguchi

218

Higashi-Gotanda1Chome

201

Ginza Sanwa 198 Property A Kawasaki Isago 197 Umeda Square 185 Nagoy a Misono 157 Jozenji Park 191 16MD Kanda 198 Saitama Urawa 189 Sendai Honma 179 90,510Genki Medical Plaza 183 Property C (9.9%)Ky odo (Kay abacho2Chome)

181 Tosei Tenjin 167

Burex Ky obashi 176Ry oshin Ginza EM 173Ginza 1Chome 160CosmoKanasugibashi

160

Kodenmacho 150

Burex Kojimachi 132 Jingumae MS 146 Property F Property I Property D 5Aoy ama Cry stal 117 da Vinci Harajuku 117 Tenjin Cry stal 112 36,765

Property G (4.0%)

Clov er Shiba-koen 98 Ikebukuro 2Chome 74 26,228(0.7%)

Total Numberof Buildings 67

Total AcquisitionPrice (¥mm)

918,123

(％) (100.0%)

Number ofPM Companies

12


(％)


Other Areas

Osaka / Kyoto / Kobe

479,666

24 12

203,515

9 3 57 2 3

　　　　　　　　　　Area

Tsubo perStandard f loor(Tsubo≒3.3 m²)

Area

Tokyo 23 Wards

OtherNagoya3 Central Wards Other Area

(3.4%)

6 5 416

62,40170,228

(7.8%)(52.2%)

150 - 200

100 - 150

- 100

Tokyo MetropolitanArea (excl. 23 Wards)

450 -

300 - 450

200 - 300

30,940 71,371

(22.2%) (7.6%) (6.8%)

Portfolio Classification by Building Age and Location

69

Building Age and Walking Time from the Nearest Station

Properties aged 10 years or less account for approx. 30% of the total properties on an acquisition price basis.The ratio of properties located within a five-minute walk from the nearest station is approx. 91% of the total properties on an

acquisition price basis.

(As of September 30, 2016)show s properties conveniently located w here multiple lines are available in Tokyo 23 Wards.

Blue Italic shows the property acquired in Sep. '16 Period Red Italic shows the transferred properties

Total Numberof Buildings


- 1 min. w alk 1 - 5 min. 5 - 10 min. 10 min. - - 1 min. w alk 1 - 5 min. 5 - 10 min. 10 min. - (％)Otemachi FCN TIX UENO Harumi Front Shijo Karasuma Amagasaki Front 12Shinjuku Eastside Ginza 1Chome Harumi Center Higashi Nibancho 279,221

Shiodome MM Park (30.4%)8･3 Square Kita

KitanomaruSquare

Clov er Shiba-koen

Lit City Hirokoji Place 17

Burex Kojimachi Osaki Front Tower Queen's AER 274,101Mitsubishi UFJTrust

Higashi-Gotanda1Chome

(29.9%)

MD Kanda Nibancho Garden

Harmony Tower Yoy ogi 1Chome

Burex Ky obashiRy oshin GinzaEMJingumae MS

Toky o Opera City Kandabashi ParkCosmoKanasugibashi

Hachioji First Umeda Square Tosei Tenjin Property B 31

Ebisu Neonato Akasaka Park Property A Nishiki Park Shin-Fujita Property F Property D 267,730

Kodenmacho Otsuka Higashi-Ikebukuro

Ikebukuro2Chome

NHK Hiroshima Tenjin Cry stal (29.2%)

Ky odo(Kay abacho2Chome)

Ikebukuro YS Sakaisujihonmachi Jozenji Park

Property G Shinwa Sendai Honma Kanazawa ParkOmori-EkiHigashiguchi

da Vinci Harajuku Midosuji Daiwa Nagoy a Misono

Musashi KosugiSTM

Kawasaki Isago

Saitama Urawa

Property I

Hinode Tenjin

Nagoy a HirokojiGenki MedicalPlaza

Shiba 2ChomeDaimon

Property J Property C 7

Ginza Sanwa Aoy ama Cry stal 97,069

Yurakucho DenkiShibuy a CrossTower

(10.6%)

Property E Property H

Sanno Grand

Total Numberof Buildings

16 17 7 0 13 13 1 0 67


301,483 301,848 79,851 0 120,776 112,614 1,550 0 918,123

(％) (32.8%) (32.9%) (8.7%) (0.0%) (13.2%) (12.3%) (0.2%) (0.0%) (100.0%)

Area

Tokyo 23 Wards

20 -30 years

30 years -

Other Areas

- 10 years

10 - 20 years

　　　 Time

Building Age

6. Others

Sponsorship

Asset Manager

J-Rea specializes in managing office building portfolio Expertise of Mitsubishi Estate and Mitsui & Co. is fully utilized Units are listed and traded on the Tokyo Stock Exchange Dividends are regarded as an expense if over 90% of the payable gain is paid out

Points

Investment Corporation

Liability

Equity

Asset

Office buildings,etc.

Investors

InvestorsTrade

Tokyo StockExchange

Investmentunits

/Dividends

Investment

Principal andInterest

Fund-raising

Investment &Management

in Real Estate,etc.

Entrusting

Outline of Japan Real Estate Investment Corporation

90%

10%

*not excluding the acquisition price related to the transfer of the part of Jingumae MS site

Japan Real Estate AssetManagement Co., Ltd.

Japan Real EstateInvestment Corporation

• FinancialInstitutions

• InvestmentCorporationBondInvestors, etc.

Structure

The Strengths of Japan Real Estate Investment Corporation

☝ Property pipeline support• Providing properties• Property information, etc.

☝ Operating support• Providing expertise on attracting

tenants• Property management, etc.

☝ Human resource support• Sending experienced professionals

＜Protection against conflicts of interest＞Compliance Committee including external expert serving as a protection against conflicts of interest.

72

（As of September 30, 2016）

① Collaboration with the sponsors:

② Investment Corporation focused on office buildings（68 office buildings, total acquisition price: ¥923.6 billion*）

③The first listed J-REIT, showing steady performance for 30 consecutive periods④Sound financial strength

• Conservative LTV （cruising speed of 30%- 40% level）• Highest level of credit ratings in J-REITs（S&P: A+, Moody’s: A1, R&I: AA）

Promote and control company-wide compliance Concentrate and centrally manage compliance-related information in each department Plan and draw up the company-wide Compliance Program Support compliance-related activities in each department Inspect, examine and improve compliance-related activities in each department Deal with incidents and problems as they occur Compliance committee secretariat

Promote compliance in respective operations Oversee and assess compliance-related practices in daily operations Boost department-wide awareness on compliance via taking the lead by examples Draw up and implement compliance programs, etc. Draw up and implement relevant regulations and manuals, etc.

Decides basic points regarding compliance Draw up and announce basic compliance policy Build compliance organization structure Approve Compliance Regulation, Manual, and Program, etc.

Discuss and decide matters related to conflict of interest prevention and other important compliance-related matters Discuss and approve important transactions that involve key related parties Develop compliance structure Discuss and decide issues related to compliance Discuss and decide other important matters related to compliance

JRE’s basic principle of compliance is to thoroughly observe legal and other relevant norms in regard to the business operation as well as to respond to the requirements from society. This means that the Investment Corporation administers and oversees the outsourcingcompanies from the same standpoint, while complying with legal and other relevant norms in its decision-making.

Compliance Structure

The following is the compliance system for the Asset Management Company.

The Asset Management Company has entered into contracts with several law firms with different specialized areas as its corporate lawyers in order to complement our knowledge of legal tasks in the company, and consults with them, as necessary, depending on the content of issues

It has also concluded a consulting contracts with external advisors for improving and strengthening internal control, with a view to further enhancing our compliance system

The compliance system for the Asset Management Company is mainly organized by the board of directors, compliance committee and compliance department.Although the compliance manager in each department plays a central role in the compliance promotion activities, it is understood that each member of the Asset Management Company staff must be a leader in compliance promotion. Therefore, they are highly alert to compliance issues in performing their tasks, and maintain sound work ethics and strict self-discipline in observing the rules and regulations in their everyday work.

Board of Directors

Compliance Department

Compliance Manager in Each Department

Compliance Committee

Basic Principle of Compliance for the Investment Corporation

Compliance Promotion System

Basic Principle of Compliance for the Asset Management Company Ensuring thorough compliance is our basic management principle, since we understand that any insufficiency in compliance would

affect even our management base As an Asset Management Company, we recognize that we bear the responsibility for realizing the values that are required by society in

our business operation, and make proactive and continuous efforts for full compliance to enhance the value of our business operation qualitatively and quantitatively

We, the Asset Management Company for REIT, are jointly managed by Mitsubishi Estate Co., LTD., and Mitsui & Co., Ltd. across business boundaries—they are Japan’s leading companies in real estate, finance, and risk management. We therefore promote a sophisticated compliance system as a key member of these companies

We are determined to achieve a reputation for quality among our investors by promoting compliance activities, and thereby gain the trust of a wide spectrum of society

73

Term fee

Each amount calculated in the following formula is based on the current cash flow（CF）.CF = Income or loss before income taxes +（Depreciation expenses and the amortization of deferred assets）-

（Gain or loss on sales and valuation of Specified Assets）Furthermore, calculation of the term fee shall be based on the CF before deduction of the relevant term and incentive fees.

[Formula]*For the portion of the CF that is not more than 2.5 billion yen, the amount equivalent to such portion is multiplied by 8.0%For the portion of the CF that is more than 2.5 billion yen but not more than 4 billion yen, the amount equivalent to such portion is multiplied by 5.0%For the portion of the CF that is more than 4 billion yen, the amount equivalent to such portion is multiplied by 3.0%

Incentive fee

Acquisition fee

Transfer fee

In the case of acquisition of Real Estate Assets or other Specified Assets, an amount equivalent to the purchase price（excluding the consumption and local consumption taxes imposed on buildings) multiplied by a rate no higher than 0.5%*

In the case of transfer of Real Estate Assets or other Specified Assets, an amount equivalent to the sales price multiplied by a rate no higher than 0.5%

* Reduction in term-fee rates was agreed upon at the unitholders’ meeting held on March 28, 2003. The new rates above apply from Sep. ’03 Period.

Structure and Past Record of Fees to Asset Management Company

* The structure of the acquisition fee was revised in accordance with a resolution passed at the unitholders’ meeting held on March 17, 2009.


1. If (i) during the recent six (6) consecutive fiscal periods, including the relevant fiscal period, the CF per Unit for the fiscal period is equal to or larger than that of the previous fiscal period, and (ii) the CF per Unit for the relevant fiscal period with respect to when the incentive fee is calculated, increases from that in the previous fiscal period, the following formula applies:

[Formula]（［CF per Unit as of the last day of the relevant fiscal period］ – ［CF per Unit as of the last day of the immediately preceding fiscal period］）x（Total number of outstanding Units as of the last day of the relevant fiscal period）x 30.0%

2. If, although the requirement in (1) (i) above is not satisfied, such CF per Unit exceeds the arithmetic average of the CF per Unit during the recent six consecutive fiscal periods and the requirement in (1) (ii) above is satisfied, the following formula applies:

[Formula]（［CF per Unit as of the last day of the relevant fiscal period］ – ［Arithmetic average of the CF per Unit during the recent six fiscal periods, including the relevant fiscal period］）x（Total number of outstanding Units as of the last day of the relevant fiscal period）x 30.0%

CF per Unit shall be calculated by dividing the CF by the total number of outstanding Units as at the end of each fiscal period; provided, however, that if either of the below events come into force and the total number of outstanding Units increases or decreases during the recent six fiscal periods including the relevant fiscal period, in order to exclude the effects on CF per Unit by such increase or decrease in the number of Units, the figure of CF per Unit during the recent six consecutive fiscal periods shall be adjusted and calculated.

(i) Consolidation or Split of Units(ii) Issuance of New Units upon Exercise of New Units Acquisition Rights concerning Allotment without Consideration for UnitholdersIf the Investment Corporation acquires Own Units and holds Own Units that are not disposed or canceled as at the end of each fiscal period, the figure obtained by subtracting the number of Own Units held from the total number of outstanding Units as at the end of each fiscal period shall be deemed as the total number of outstanding Units as at the end of each fiscal period.Calculation of the incentive fee shall be based on the CF before deduction of any incentive fee.

Structure of Fees to Asset Management Company

Merger fee

In the case of a merger by the Investment Corporation, an amount equivalent to the valuation of real estate, etc. at the time of the merger succeeded to by the investment corporation, which is a counterparty to the merger multiplied by a rate no higher than 0.5%

* The structure of the merger fee was established in accordance with a resolution passed at the unitholders’ meeting held on February 19, 2014.

* The structure of the incentive fee was revised in accordance with a resolution passed at the unitholders’ meeting held on February 19, 2014 and March 17, 2015.

74

Asset Management Fees Paid to the Asset Management Company

75

(*1) Accounting treatment of asset management fees(*a) Expense (Administrative expenses)(*b) Capitalized for asset(*c) Expense (reflected in capital gain/loss as transfer expense)

(*2) Total assets are a simple average at the end of each period(*3) On the chart above, acquisition of extended building of Ryoshin Ginza East Mirror Building is not included in ‘Amount of Acquisition

Price during the Period’ since it is not subject to Acquisition Fee

→New Asset Management Fee Rate (change of acquisition)Sep. '08 Mar. '09 Sep. '09 Mar. '10 Sep. '10 Mar. '11 Sep. '11 Mar. '12 Sep. '12 Mar. '13 Sep. '13 Mar. '14 Sep. '14Period Period Period Period Period Period Period Period Period Period Period Period Period

Term Fee (*a) 531 537 540 529 542 538 546 579 571 592 613 617 638Incentive Fee (*a) 0 0 0 0 0 0 0 0 0 0 8 57 0Acquisition Fee (*b) 78 53 0 373 0 83 0 277 110 208 64 215 3Transfer Fee (*c) 0 0 0 7 0 0 15 0 0 0 6 0 0

Total AM Fee 609 591 540 910 542 622 562 856 681 800 692 891 641

Total Assets 542,920 565,022 564,528 637,326 634,974 646,847 643,949 703,085 724,851 765,628 775,066 817,130 813,931Amount of Acquisition Priceduring the Period 24,000 21,250 0 77,026 (*3)0 16,710 0 60,800 22,000 41,770 12,967 43,174 650

Amount of Transfer Priceduring the Period

0 0 0 1,507 0 0 3,160 0 0 0 1,220 0 0

Term Fee／Total Assets 0.10% 0.10% 0.10% 0.08% 0.09% 0.08% 0.08% 0.08% 0.08% 0.08% 0.08% 0.08% 0.08%Incentive Fee／Total Assets －－－－－－－－－－ 0.00% 0.01% －Acquisition Fee／Amount ofAcquisition Price during the Period 0.33% 0.25% － 0.49% － 0.50% － 0.46% 0.50% 0.50% 0.50% 0.50% 0.50%

Transfer Fee／Amount ofTransfer Price during the Period －－－ 0.50% －－ 0.50% －－－ 0.50% －－

Total AM Fee/Total Assets 0.11% 0.10% 0.10% 0.14% 0.09% 0.10% 0.09% 0.12% 0.09% 0.10% 0.09% 0.11% 0.08%

→New Asset Management fee Rate (reduction) (In millions of yen)Mar. '02 Sep. '02 Mar. '03 Sep. '03 Mar. '04 Sep. '04 Mar. '05 Sep. '05 Mar. '06 Sep. '06 Mar. '07 Sep. '07 Mar. '08Period Period Period Period Period Period Period Period Period Period Period Period Period

Term Fee (*a) 389 382 408 312 325 330 342 392 410 422 452 476 713Incentive Fee (*a) 0 0 24 80 0 32 134 0 160 230 0 185 1,860Acquisition Fee (*b) 649 88 185 90 192 213 464 180 475 33 134 71 386Transfer Fee (*c) 0 0 0 0 0 0 0 0 0 20 154 8 0

Total AM Fee 1,038 470 617 484 518 576 941 573 1,046 707 741 741 2,960

Total Assets 161,809 185,397 200,022 209,581 244,523 257,372 322,358 355,968 433,552 441,163 443,973 449,643 527,537Amount of Acquisition Priceduring the Period

144,697 19,580 19,265 9,065 25,830 21,390 50,683 36,050 86,205 12,630 49,850 7,100 72,029

Amount of Transfer Priceduring the Period 0 0 0 0 0 0 0 0 0 7,003 41,900 1,770 0

Term Fee／Total Assets 0.24% 0.21% 0.20% 0.15% 0.13% 0.13% 0.11% 0.11% 0.09% 0.10% 0.10% 0.11% 0.14%Incentive Fee／Total Assets －－ 0.01% 0.04% － 0.01% 0.04% － 0.04% 0.05% － 0.04% 0.35%Acquisition Fee／Amount ofAcquisition Price during the Period 0.45% 0.45% 0.96% 1.00% 0.75% 1.00% 0.92% 0.50% 0.55% 0.26% 0.27% 1.00% 0.54%

Transfer Fee／Amount ofTransfer Price during the Period －－－－－－－－－ 0.29% 0.37% 0.50% －

Total AM Fee/Total Assets 0.64% 0.25% 0.31% 0.23% 0.21% 0.22% 0.29% 0.16% 0.24% 0.16% 0.17% 0.16% 0.56%

Mar. '15 Sep. '15 Mar. '16 Sep. '16Period Period Period Period Per Period Per Year

Term Fee (*a) 647 687 697 707 529 1,059Incentive Fee (*a) 124 238 235 256 133 267Acquisition Fee (*b) 227 221 0 0 154 308Transfer Fee (*c) 0 0 21 0 8 17

Total AM Fee 999 1,147 955 965 826 1,652

Total Assets 852,679 899,938 890,626 883,633Amount of Acquisition Priceduring the Period

45,459 44,263 0 175 28,928 57,857

Amount of Transfer Priceduring the Period

0 0 4,366 0 2,256 4,513

Term Fee／Total Assets 0.08% 0.08% 0.08% 0.08% 0.09% 0.18%Incentive Fee／Total Assets 0.01% 0.03% 0.03% 0.03% 0.02% 0.04%Acquisition Fee／Amount ofAcquisition Price during the Period 0.50% 0.50% － 0.50% 0.53% 0.53%

Transfer Fee／Amount ofTransfer Price during the Period －－ 0.50% － 0.39% 0.39%

Total AM Fee/Total Assets 0.12% 0.13% 0.11% 0.11% 0.14% 0.28%

Average Sep. '03 Period～

594,363(*2)

GRESB (Global Real Estate Sustainability Benchmark) was established in 2009 by a group of European

pension funds. It is an annual benchmark evaluation to assess the environment, society and governance

(ESG) performance of the real estate sector. Major European, American and Asian institutional investors

utilize this benchmark in their investment decision-making processes. GRESB Real Estate Assessment

is unique in evaluating not the individual property itself, but the environment-friendliness and

sustainability approach of each real estate company and REIT.

In the 2016 GRESB Real Estate Assessment, JRE was highly

evaluated and acquired the best status, a "Green Star".

Acquired the best status, a “Green Star” in GRESB

gContinue to make efforts for maintaining and improving competitiveness

in the market over the mid- to long- term

What is GRESB?

Acquired a “Green Star”

Organize an emergency drill and AED training Stock emergency food and portable toilets Set up an MCA wireless communication system for

emergency to contact the asset management company and property management companies

Install a Visual Sensor System for Earthquakes (Kitanomaru Square, Mitsubishi UFJ Trust, Harumi Front, Akasaka Park, Shibuya Cross Tower and MM Park)

Environmental Measures·Disaster Prevention ·Strengthen Portfolio Competitiveness

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Environmental Measures · Disaster Prevention · Renovation to strengthen Portfolio Competiveness

Nagoya HirokojiMassive Renovation

Mitsubishi UFJ TrustBuilt extra oil tank to activate the generator in case of emergency

Lit CityRenovation of smoking areas

Tosei TenjinRenovation of common areas

Ginza SanwaRenovation of common areas

Jingumae MSNewly built

smoking areas

Holds ‘HAMASITE Summer Festival’ at the open space of Shiodome, in collaboration with city assembly, area management association and retail tenants

Sponsorship to concerts and art exhibitions as well as lunchtime concerts for free in Tokyo Opera City

Sponsorship to light-up illuminations decorating along the Meguro River nearby Osaki Front Tower

77

Main reasons for ‘Five Stars’ Installed LED lighting and lighting control system utilizing daylight in common areas Excellent environmental performance by greening exterior walls, rooftop and flower beds in the site Ensure emergency power source operating for long hours Effective disaster prevention measures such as regional warehouses

for emergency and vibration control system in building Install universal design toilets

MM Park Osaki Front Tower Harumi Center

DBJ Green Building CertificationThe highest rank ‘Five Stars’ given by DBJ

Contribution to local community

Aim for sustainable growth with environment and local community

Harumi Front

Shinjuku East

Buildings that are given ‘Four Stars’ (previously ‘Gold’ rank)

The first property to be given ‘Five Stars’ (previously ‘Platinum’ rank) of the properties owned by J-REITs

Main reasons for ‘Five Stars’ Installed LED lighting, lighting control system and BEMS in common

areas as well as environmental awareness such as reuse of rain waterand reclaimed water

Disaster prevention measures installing power-generating system with continuous operation of 72 hours and food and beverage stock

Greening 40% of the site to restrain urban heat island that contributes to local community

『HAMASITE Summer Festival』 of Shiodome

Key Properties of JRE（As of September 30, 2016）

Kitanomaru Square（Chiyoda-ku, Tokyo）

Acquisition Date September 13, 2005/March 24, 2010 Acquisition Price ¥31,776 million Area Land: 18,236.94 ㎡

Building: 232,996.81 ㎡（Ownership: 31.325%）

Completion Date July 1996

Acquisition Date March 28, 2007 Acquisition Price ¥44,700 million Area Land: 8,100.39 ㎡

Building: 108,171.67 ㎡（Ownership: 19.38402%）

Completion Date February 2003

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Acquisition Date January 7, 2013 Acquisition Price ¥31,300 million Area Land: 7,250.15 ㎡

Building: 45,458.90 ㎡ Completion Date February 2012

Mitsubishi UFJ Trust and Banking Building（Chiyoda-ku, Tokyo）

Harumi Front（Chuo-ku, Tokyo）

Tokyo Opera City Building （Shinjuku-ku, Tokyo）

Acquisition Date February 24, 2006 Acquisition Price ¥81,555 million Area Land: 5,821.03 ㎡

Building: 57,279.20 ㎡ Completion Date January 2006

Acquisition Date March 24, 2008 Acquisition Price ¥37,400 million Area Land: 6,825.77 ㎡

Building: 49,037.51 ㎡ Completion Date December 2007

Acquisition Date November 30, 2001 Acquisition Price ¥34,600 million Area Land: 5,153.45 ㎡

Building: 61,862.33 ㎡ Completion Date April 1976

Acquisition Date December 19, 2008/January 15,2010/May 1, 2015

Acquisition Price ¥85,950 million Area Land: 12,054.22 ㎡

Building: 115,930.83 ㎡（Quasi-co-ownership: 45% of the trust beneficiary right）

Completion Date December 2007

Acquisition Date November 15, 2011 Acquisition Price ¥60,800 million Area Land: 14,198.20 ㎡

Building: 97,489.16㎡ Completion Date July 1993

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Akasaka Park Building （Minato-ku, Tokyo）

Shiodome Building （Minato-ku, Tokyo）

Shibuya Cross Tower（Shibuya-ku, Tokyo）

MM Park Building （Yokohama City, Kanagawa Prefecture）

◆Unit Price Performance

80

Unit Price Performance ① (After IPO)

◆Historical Dividend Yield of JRE Unit

Average 3.76%

Fiscal Period End(the end of March and September)

Issue of New Investment Units

Unit Price Trading Volume* Unit prices are based on daily closing prices.* JRE has conducted 2-for-1 investment unit split on January 1, 2014.* Unit prices are all noted after the split.* Trading volume shows average volume during each fiscal period.

* The Dividend yield is calculated by dividing annualized actual dividend by unit price (daily closing price from April 1, 2002 to September 30, 2016).* The average yield of stocks is based on fixed dividends and is simple average of dividend yield of stocks listed on the 1st section of TSE on a monthly basis as of

September, 2016.* Interest on the time deposit (more than six months but less than one year) is on a monthly basis as of August 2016.* Gray lines show ex-dividend dates.* Source: Bank of Japan, Tokyo Stock Exchange

Dividend yieldAverage yield of stocksInterest on the time deposit(more than six months but less than one year)

'16'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

'01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16

81

* Circles (●) show announcements of JRE’s events.* Triangles (▲) show announcements of acquisition and transfer.

Unit Price Performance ②（From Sep. ’16 Period to Date）

MEMO

As of October 31, 2016

Unit Price

Trading Volume

May 16, 2016 Announcement of Mar. ’16

Period Performance

September 26, 2016Notice on Acquisition of Kanazawa

Kamitsutsumicho Building

’16

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Unit Price Performance ③（Relative to Major Indices）

◆Unit Price Performance （As of October 31, 2016）

◆Total Return Performance（As of October 31, 2016）

JRE

Average Offer Price

TPREAL

TSE REIT index

TOPIX

* Stock performance is measured based on the offer price of 262,500 yen（after the split）for JRE and the closing prices of 1,080.83 for TOPIX and 770.21 for TPREAL on September 7, 2001. The TSE REIT index is a ratio against the closing price on March 31, 2003.

* TPREAL（TOPIX Real Estate Index）is a weighted index designed to measure the performance of the real estate sector of the TOPIX index.* Stock prices are based on the closing prices of each day.* The stock price performance above is historical and not an indication of future performance.

* Total return is the rate of return on investment in JRE from September 10, 2001 to the end of each holding period. Total return consists of capital gains and income gains under the assumption of reinvestment of dividends.Total return ＝((the number of units acquired by reinvestment of dividends+1)×(the last closing price/the closing price on September 10, 2001)-1)×100

* Total return is calculated from September 10, 2001 to October 31, 2016 on a daily basis.* Source：Bloomberg.

JRE Average Offer Price TOPIX TPREAL TSE REIT index

JRETOPIX

’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16

’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15’01 ’16

As of October 31, 2016Total Return

JRE： 288.6%TOPIX： 70.5%

Yield Spread Comparison

◆JRE Dividend Yield Spread against JGB

◆TSE REIT Dividend Yield Spread against JGB


* Source: Bloomberg （Dividend yield is based on the actual performance）


* Source: Bloomberg （Calculated based on the dividend yield of TSE REIT Index. Dividend yield is based on the actual performance）

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JRE

10-year JGB Yield

Average Spread2.67%

Average Spread(from Sep. 2003)

2.55%

06/05/2007Minimum 0.32%

09/30/2008Maximum 5.52%

Average Spread（from Sep. 2003）

3.35%10/28/2008

Maximum 9.22%

06/05/2007Minimum 0.70%

’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16

TSE REIT Index

10-year JGB Yield

’16’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15

Interest Rate Comparison of Japan and U.S.

◆Long-term Interest Rate Comparison of Japan and U.S.（As of October 31, 2016）

◆Yield Curve Comparison of Japan and U.S. （As of October 31, 2016）

* Long-term interest rates are the yields of Japan and U.S.10-year Government Bonds.* Source: Bloomberg.

* Source: Bloomberg

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U.S. Long-term Interest RateJapan Long-term Interest RateSpread

U.S. Japan

3M 1Y 2Y 3Y 4Y 5Y 6Y 7Y 8Y 9Y 10Y 15Y 20Y 30Y6M

’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’10 ’11 ’12’09 ’13 ’14 ’15 ’16

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J-REIT Market

◆J-REIT Market Capitalization and the Number of Listed J-REITs （As of October 31, 2016）

◆Sector Breakdown by Market Capitalization（As of October 31, 2016）

September 10, 2001J-REIT market establishment

Market cap: approx. ¥260 billionListed J-REITs: 2 （JRE, NBF）

Listed J-REITs（RHS）

Market Cap（LHS）

* Source: Security registration statements, financial statements and websites of each J-REITs.* “Complex” refers to J-REITs that invest in properties in two different sectors;

“Diversified” refers to J-REITs that invest in properties in three sectors or more.

* Source: Bloomberg.’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16

October 31, 2016Market cap: approx. ¥11 trillion 540 billion

Listed J-REITs: 56

Disclaimer concerning ForecastsThis presentation contains information regarding forecasts based on the plans and outlook of Japan Real Estate Investment Corporation (JRE). All data contained herein, other than those that describe current or historical data, are based on such forecasts. These forecasts are based on the assumptions, judgment, and data currently available from Japan Real Estate Asset Management (J-Rea) and JRE. These data may contain known and unknown risks, uncertainty, and other factors not accounted for. The forecasts herein may be affected by known and unknown risks, uncertainty, or other factors, particularly with respect to JRE’s internal and external growth and profitability-per-unit targets. The aforementioned risks, uncertainty, and other factors may result in significantly different results regarding JRE’s future performance, management, and financial data implicitly or explicitly presented herein. JRE shall assume no obligation to update or further disclose data regarding these forecasts after the date of this presentation.

Issued on November 16, 2016 87

Disclaimer concerning TranslationThis report was prepared in English solely for the convenience of readers outside Japan. No assurance or warranties are given for the completeness or accuracy of the English translation. The original Japanese documents shall take precedence in the event of any discrepancies arising from the translations or interpretations contained in this report.

Kitanomaru Square Shiodome Building Akasaka Park Building Tokyo Opera City Building

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